New Company Represents Alliance of Starwood's Real Estate Expertise And Operating Know-How of Senior Resource's
Management
Company Press Release: Senior Resource Group L.L.C.
June 15, 2000
SAN DIEGO, CA -- Starwood Opportunity Fund V., L.P., a real estate fund managed by Starwood Capital Group L.L.C.
and Senior Resource Group L.L.C. of San Diego yesterday announced the formation of a new senior housing company
based in San Diego, California. The new company will continue under the name ``Senior Resource Group'' and will
carry on the business of that company, which has been operating in the West for the past 13 years as a developer,
a marketer and a manager of full-service retirement communities.
The collaboration represents a melding of Starwood's real estate expertise and capital with the development and
operating expertise of the predecessor company. Starwood's investment will enable Senior Resource Group to expand
its current assets by building three new communities in markets that have substantive ``barriers to entry.'' To
be built in San Diego, Los Angeles and Santa Barbara, the three communities will start construction in the next
12 months. They will offer a range of residential options including senior apartments, full service independent
or ``congregate'' apartments, assisted living with special care wings and, in one case, skilled nursing.
In addition to these developments, Senior Resource Group, L.L.C. has also completed the acquisition of SpringRidge
at Charbonneau, a 180-apartment congregate care facility in Portland, Oregon, which they have managed since its
opening in 1990. Plans are underway to expand the facility with the addition of an 85-apartment assisted living
building that will also offer special care units. As a result of these transactions and other existing projects,
Senior Resource Group will manage more than 1,400 senior apartments with an aggregate value in excess of $200 million.
``We've spent considerable timing looking at senior housing and believe this management team has the vision and
experience to lead the industry into the future,'' said Tim Fox, Vice President of Starwood Capital Group. ``Senior
Resource Group, L.L.C. is a capable niche operator whose management style effectively combines hospitality and
healthcare services. Additionally, the company has thoughtfully identified and secured locations in supply-constrained
markets where new communities are most needed. The new communities are fully entitled and we expect to move ahead
without delays.''
``We have been planning for significant growth in our business for some time,'' said Michael Grust, president of
Senior Resource Group. ``We are very excited about the opportunities created by Starwood Capital's strategic investment
in SRG and the formation of the new development and management company. Our ability to execute our plans will be
significantly enhanced by this association with Starwood.''
``We have always rejected the cookie-cutter approach of building identical projects regardless of the market,''
Grust remarked. ``We tailor each community to the needs and interests of the local geographic market. Starwood
shares our belief that this is the most appropriate approach to this changing industry, and has backed its faith
in the company and the industry with a significant capital infusion.''
Grust added that Senior Resource Group will also continue to manage and operate retirement communities owned by
others under fee-based management contracts.
Based in Greenwich, Connecticut, Starwood Capital Group L.L.C. is a privately held investment management firm that
specializes in real estate related investments on behalf of select private and institutional investor partners.
Since 1991, through a series of opportunity funds and affiliates, Starwood Capital Group has invested more than
$7 billion in various assets, strategic joint ventures and real estate operating companies.
CONTACT: Dan Peoples of Peoples & Company, 858-552-1456, for Senior Resource Group L.L.C.
SOURCE: Senior Resource Group L.L.C.