H2C CLIENT TRANSACTIONS

H2C Secures Capital For Behavioral Health Facility Redevelopment

July 2022

NEW YORK — H2C Securities Inc. (“H2C”), a healthcare-focused strategic advisory firm, served as the exclusive advisor to AM Behavioral Health, LLC, a joint venture between the principals of Meridian Senior Living, LLC and Midwest Behavioral Management, LLC (“Sponsorship”), to secure equity and debt for the conversion of a senior living community to a 96-bed behavioral healthcare facility (the “Facility”) in the Dayton, Ohio, market.

Director Matthew Tarpley and Senior Associate Michael Fioravanti led the transaction for H2C.

The Facility will feature distinct wings to allow for three modalities of care: (1) 36 memory care beds for patients with Alzheimer’s disease or dementia exhibiting violent and/or aggressive behavior, (2) 20 inpatient beds for geriatric psychiatric care, and (3) 40 beds for general behavioral health and psychiatric residential-based treatment. In addition, the Facility will allow for intensive outpatient psychiatric care and counseling for patients integrating out of the residential setting.

The Property is poised to address a significant unmet demand for behavioral health in the Dayton area and will likely attract patients from a +50-mile radius, with most residents coming from within 20 miles given the lack of options present in the market.

Upon completion, which is scheduled for mid-2023, the hospital will be managed by Midwest Behavioral Management, LLC, a new management company created to focus on the conversion of senior housing communities to behavioral health facilities.

The joint-venture equity will be provided by a Texas-based real estate private equity firm with a demonstrated track record in the healthcare sector, and the financing will be provided by an Ohio-based bank with a presence across four states.

"H2C was a critical partner in our efforts to capitalize this project. They were able to help us find the right financial partners to support the construction and operational evolution." said Robert Sweet, co-CEO of AM Behavioral Health, LLC.

Notably, the transaction represents one of several behavioral health joint ventures between health systems and specialty operators—both real estate and M&A—that H2C has led over the past 24 months. This is a space in which H2C has developed a true expertise.

“Tim and his team identified a significant unmet demand for behavioral healthcare offerings in Dayton and carefully selected a best-in-class operating partner to execute the vision,” said Matthew Tarpley, Director at H2C. “Behavioral health is a rapidly growing segment of healthcare real estate, and Sponsorship partnered with capital sources that have an aligned vision for this sector and the ultimate success of the Facility.” Email Matthew.
 

“We had an inherent belief in the success of the redevelopment and therefore were able to effectively communicate the story to prospective partners and lenders, ultimately securing the financing from an Ohio-based bank and an equity partner that will be a resource to our client beyond just this transaction,” said Michael Fioravanti, Senior Associate at H2C. Email Michael

About AM Behavioral Health, LLC

AM Behavioral Health, LLC, is a joint venture between the principals of Meridian Senior Living (“Meridian”) and Midwest Behavioral Management, LLC. Widely regarded as a top national senior living operator and investor, Meridian has a successful track record of partnership in the behavioral health space, as there are synergies between its comprehensive approach to memory care that it developed through extensive research and first-hand experience. Midwest Behavioral is a privately owned operator of comprehensive, inpatient individualized care focusing on the mental health needs of the community according to their psychological and physical needs.

About H2C Securities Inc. ("H2C")

 

H2C is a strategic advisory and investment banking firm committed to providing superior advice to healthcare organizations, higher education institutions, and related organizations throughout the United States. H2C’s professionals have a long track record of success in mergers and acquisitions, capital markets, and real estate transactions, acting as lead advisors on hundreds of transactions representing billions of dollars in value.

For more than 20 years, the real estate investment banking professionals at H2C have successfully served as advisors on real estate transactions in excess of $15 billion nationwide. For more information on our real estate advisory group, please contact one of the H2C professionals or visit our website at h2c.com.

Securities and services offered through H2C Securities Inc., member FINRA/SIPC, a registered broker-dealer and an indirect subsidiary of Fifth Third Bank, National Association. All rights reserved. Securities and services offered through H2C Securities Inc.: Are Not FDIC Insured; Offer No Bank Guarantee; May Lose Value; Are Not Insured by any Federal Government Agency; Are Not a Deposit. 

For more information, visit h2c.com