Fifty Stones Closes $19M Assisted Living Deal in Iowa, Turning Quiet Distress into Strategic Gold.

AUSTIN, TX – May, 2022 —Fifty Stones Capital Group, a fast-rising capital advisory firm known for uncovering unique and resilient opportunities, has successfully closed a $19 million acquisition and repositioning deal for a senior living portfolio in eastern Iowa. This milestone transaction underscores the firm’s expanding footprint in healthcare real estate and its bold commitment to high-impact, high-integrity investing in underserved markets.

The off-market deal centers on a two-property assisted living and memory care portfolio totaling 142 units across two mid-sized Iowa cities. Despite strong local demand for senior housing, the portfolio had been underperforming due to management inefficiencies, staffing challenges post-COVID, and outdated facilities that had not kept pace with resident expectations or regulatory changes. The opportunity landed on Fifty Stones’ radar through a long-standing broker relationship specializing in healthcare real estate. The seller, a regional operator who had grown fatigued navigating capital constraints, was seeking a discreet, capable buyer who could execute quickly and protect staff continuity during the transition.

Fifty Stones Capital Group structured the transaction as a $19 million total capitalization, which included:

• $14.5 million senior acquisition financing, secured through a specialized healthcare REIT lender

• $2.5 million in LP equity, raised through Fifty Stones’ private investor network

• $2 million in renovation and operational improvement reserves, structured as a CapEx line within the senior loan

The team navigated a tight 45-day closing timeline, complicated by multiple regulatory hurdles at the state level, staffing retention negotiations, and facility-specific compliance upgrades.

“This wasn’t a plug-and-play closing,” said Jaycox Dominick, Vice President at Fifty Stones Capital Group. “We had to work closely with healthcare attorneys, state licensing boards, and transitional management partners to ensure a seamless handoff. The mission was continuity of care, without disruption.”

Deal Terms Snapshot

• Total Capitalization: $19M

• Senior Loan: $14.5M (5-year term, 6.85% fixed, interest-only for 24 months)

• Equity: $2.5M (projected IRR: 18–20%, 2.1x equity multiple over 5 years)

• Renovation Budget: $2M over 18 months, targeting memory care improvements, ADA upgrades, and technology enhancements

• Occupancy at Close: 72%, with a target stabilization of 90% within 24 months

• Exit Strategy: Refinance with HUD or private sale to REIT/operator upon stabilization
  

The acquisition is more than a financial win—it’s a mission-driven investment. Iowa’s aging population is growing faster than its infrastructure, and communities like these play a vital role in bridging that gap. Fifty Stones’ plan includes not just improving the buildings, but expanding wellness programming, improving resident engagement, and investing in staff training and retention bonuses. Fifty Stones Capital Group is a nationwide private real estate lender focused on providing fast, flexible capital for construction, bridge, and value-add projects across multifamily, industrial, and specialized asset classes. Known for solving complex capital challenges and executing with speed, Fifty Stones is a trusted partner for sponsors and brokers across the country. For more details, visit www.fiftystonescapitalgroup.com or send an email to info@fiftystonescapitalgroup.com.