July 20, 2009

Formation Capital of Alpharetta, Georgia and Shelbourne Capital of Radnor, Pennsylvania have formed a new venture to develop and own senior living communities.The venture, Formation Shelbourne Partners, combines the investment capital of its founders and takes advantage of the development capabilities of their respective subsidiaries, Formation Development Group, LLC and Shelbourne Healthcare Development Group LLC.

Formation Shelbourne Partners was formed to capitalize o­n opportunities in the senior living market brought about by the dramatic slowdown in new projects.The company is developing projects for its own account and also offers consulting and fee development services to investors, lenders, operators and developers who want to enter the senior living industry or who desire to reposition existing assets.Services include market research, site selection, financial feasibility, zoning, entitlements, design, project finance, construction management, start-up operations, and asset management.

The venture brings together significant investing, development and consulting experience in senior living and other areas of real estate and healthcare.The principals of Formation Shelbourne Partners have been involved in the development, operations and ownership of over 180 senior living communities and healthcare facilities with an aggregate value of over 2.7 billion dollars.Projects include new development and renovations of Assisted Living, Independent Living, Alzheimer's Care communities, retirement campuses, hospitals and medical offices.

Formation Development Group, LLC is the development arm of Formation Capital.  It was founded by former executives of EdenCare Senior Living Services of Alpharetta, Georgia.  Mark Spiegel, Mark Maberry, and Jay Robinson lead the Formation Development team. Shelbourne Healthcare Development Group LLC is the development subsidiary of Shelbourne Capital.  It is comprised of Joe McElwee and Jim May, both of whom are senior living professionals from Sunrise Senior Living; as well as former Pitcairn Properties executive, Joe Fox; Jim Kane, formerly of Lehman Bros and Credit Suisse; and Jason Ladavac, previously of JER Partners. 

Joe McElwee, principal of Formation Shelbourne Partners and former Senior Vice President of Development for Sunrise Senior Living, states: “We are excited to combine the experience and regional diversity of our two groups.Together, we offer significant senior living development and asset management expertise to our clients and investors in both the United States and Canada.Despite challenges in today’s economy, the senior living industry continues to offer exciting opportunities to investors, operators, and most importantly to the seniors who will call our communities their home.”

Formation Capital invests equity in the senior housing and healthcare industry. Over the past 6 years, Formation Capital has coordinated the investments in over $4 billion of transactions. As a focused and experienced underwriter and asset manager for senior housing and healthcare investing, Formation Capital has successfully developed a strategy of "alignment of interests" with both capital and operational partners in a unique and dynamic approach to investing.