Name: Isakson Living
Locations: Two locations in Georgia: Park Springs campus in Stone Mountain and Peachtree Hills campus in Atlanta
Business profile: Continuing-care retirement communities with assisted living, independent living, memory care and skilled nursing facilities
Business model: Creating exceptional, innovative communities that provide empowerment, well-being, security and control for members and their families
Isakson Living’s Smart Growth Story:
While the company and SunTrust have had a working relationship for a number of years, Executives from Isakson Living and the bank gathered at the National Investment Center (NIC) for Senior Housing conference in 2015 to discuss how their purposes aligned in the retirement housing space. In 2016, this renewed relationship allowed for an expansion of their Stone Mountain campus, which initially opened in 2004, as well as discussion around their upcoming development on the new Peachtree Hills Place campus.
“Our business is a niche within a niche, speaking specifically as it relates to continuing care retirement communities in the senior housing space. Typically we have to sit down with folks and there’s a learning curve as it relates to the senior housing space, and then there’s even a greater learning curve as it relates to continuing care retirement communities. But for SunTrust to sit down with us and lay everything out about their background, their understanding and their familiarity was a strong takeaway for us. We were singing from the same hymnal.”
Kevin Isakson, Director of Sales and Marketing with Isakson Living
The SunTrust OneTeam Approach in Action:
Following the NIC conference, conversations between SunTrust and Isakson Living became more detailed. Isakson Living discussed its goal to complete an all-encompassing expansion of the health care services on the Stone Mountain campus.
Isakson’s focus was to not only expand, but to upgrade the community’s health care services while improving operational efficiencies. This plan would include a revamped health center on an adjacent piece of land, adding a number of skilled nursing beds, as well as converting their existing skilled nursing center into more assisted living units. This was no small undertaking, and Isakson Living still shouldered some debt from the initial build of the facility.
SunTrust developed a wholistic approach to serve Isakson Living. The plan first created a new debt solution, which would provide more favorable terms for Isakson Living to pay down its existing debt. From there, financing for the expansion was established, and the project, as well as the newly created partnership, was underway.
The SunTrust OneTeam Solution:
Financing from SunTrust allowed for the expansion of the Park Springs location in Stone Mountain. That discussion carried over to the development of the Peachtree Hills campus, where financial advising is currently underway. What’s more, SunTrust incorporated other departments of the bank to help Isakson Living reach its goals.
Isakson Living maintains its treasury management and operating accounts with SunTrust. There was also an interest rate hedge incorporated into the deal, which mitigated interest rate risk and allowed SunTrust’s Financial Risk Management team to become a significant player. Plus, SunTrust’s Aging Services department brought a tremendous amount of expertise to the table. In fact, SunTrust’s extensive experience in this vertical played a crucial role in the partnership with Isakson Living.
Through its partnership with SunTrust, Isakson Living has upgraded the quality of health care services and at the same time become more efficient in health care delivery. The goals of the project are better value for the consumer, improved pay and working environment and improved financial performance. SunTrust’s experience puts Isakson Living at ease, and allows Park Springs to confidently expanded and improved upon its vision for top of class health services.