Scarp Ridge Capital Partners In the News

February 14, 2024

JLL Capital Markets led sales effort for a partnership of two institutional clients

By Tim Mullaney | July 22, 2021

A new firm led by senior living industry veterans, Scarp Ridge Capital Partners, is launching with a $300 million fund targeting value-add, opportunistic and distressed investment opportunities.

“Scarp Ridge will look to leverage our many years of investing experience and industry relationships to be the partner of choice to owners, lenders, sponsors, and developers by acquiring, recapitalizing or restructuring deals to preserve and enhance long-term value,” Rick Shamberg, a founder and managing director of Scarp Ridge, wrote Thursday in an email announcing the new venture.

While also targeting hospitality, the firm is focused primarily on senior housing, including independent living, assisted living and memory care. Scarp Ridge is targeting equity commitments of $10 million to $50 million.

Scarp Ridge’s strategy includes acquisitions that can be made below replacement cost, with value-add potential through capital expenditures, rebranding, new management or other strategies.

Scarp Ridge is also open to providing runway capital to existing owners, and may acquire non-performing loans and create structured financing involving debt, mezzanine products and preferred equity.

Real Estate Alert | July 14, 2021

Newly formed fund shop Scarp Ridge Capital Partners is looking to buy $900 million of hotels and senior-housing properties over the next several years.

Managing partner Greg Rush founded the New York firm in April. He since has hired acquisitions veterans Kari Schmidt and Rick Shamberg. And in the past few weeks, the shop closed on a $300 million equity pledge from an unidentified family office.

The new vehicle, Scarp Ridge Real Capital Partners, will invest $20 million to $50 million of equity per deal. It can buy properties or partial interests, and can provide owners or operators with senior debt, mezzanine debt or preferred equity.

The vehicle will target a mid-to high-teens return by focusing on distressed assets. The thesis is that by acquiring properties at discounts to replacement cost, Scarp Ridge can add value through swapping hotel flags, capital improvements and/or better management. In some cases, simply recapitalizing a property may provide existing owners or operators runway capital, allowing them to navigate through the downturn.

For hotels, a space drawing increased interest from investors across the board, the shop is focused on markets with strong long-term demand drivers. It will look nationally at branded and independent hotels, as well as across chain-scale segments and it will partner with operators to run the properties.