Assisted-living, independent-living, memory-care, and CCRC campuses sit on large, valuable land, and stabilized resident income covers the ground rent comfortably. We buy the land; you keep operating the community and 100% of the upside.
| With a Valor ground lease | The usual path | |
|---|---|---|
| Development equity | Land value funds the equity for the next building, wing, or care level — you build on a thinner check. | A larger common-equity raise or a pricier construction loan to fund the expansion. |
| Recap / refinance | Permanent, non-amortizing capital retires a maturing or over-levered senior to a refinanceable level. | Cash-in refinance, a mezzanine layer, or a partial sale to plug the gap. |
| Pref takeout | Buy out the partner — land proceeds replace expensive preferred or LP equity, so you keep the promote. | Carry a 9–15% pref, or surrender promote and control to a new equity partner. |
| Equity-gap fill | Closes the gap as rent, not as a dilutive equity slug — ~6–6.75% non-amortizing. | Fill the gap with the most expensive money in the stack: fresh equity. |
| Operations | Stay the operator — you keep the license, the staff, the residents, and the management contract. | A full sale or sale-leaseback can hand operating control to a new owner or REIT. |
| Your upside | 100% kept — you own the building, the cash flow, and the appreciation. | Shared with whatever pref or JV equity you brought in to fill the gap. |
And: stabilized or lease-up campuses fit best — in-place resident income covers the ground rent · the land comes out as permanent capital with no balloon and no maturity wall · one note: fee ownership has to be yours to sell — a campus on a public-authority or PILOT parcel, where the authority holds title, can’t be ground-leased the same way.
Senior-living campuses are land-heavy: large sites, surface parking, and acreage held for future phases put a meaningful share of value in the dirt. Stabilized assisted-living, independent-living, and memory-care income is durable, so the ground rent, roughly a quarter of NOI, is covered three to four times over. That makes the land monetizable without straining operations.
No. You keep the building as a long-term leasehold, along with the license, the staff, the residents, and the management contract. We buy only the land and lease it back to you. Unlike a sale-leaseback, the operating business and the upside stay with you.
Development equity for the next building or care level, recaps and refinances, buying out preferred or JV equity, and filling an equity gap. The land value, typically 30 to 40% of basis, comes out as permanent, non-amortizing capital at roughly 6 to 6.75%, so it can replace the most expensive money in your stack while you keep the promote.
Often it does not. A ground lease requires that you actually own the fee, so it can be sold and leased back. Where a public development authority holds title to deliver a tax abatement or PILOT, the land is locked and a private ground lease generally cannot coexist. We check the recorded title and any bond or PILOT documents before quoting a land value.
Land-heavy senior-living campuses — AL, IL, memory care, and CCRCs, especially where you’re funding a next phase, recapping, or taking out a pref. Send the address, the as-complete stabilized NOI, and total project cost — we return an indicative land value in 48 hours, as principal or arranged capital.
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