Business First Louisville – May 25, 2021, 4:02pm EDT
Trilogy Health Services LLC will manage a proposed new health care facility in Shelbyville, Kentucky, which is slated to cost $14 million.
The facility will be named Shelbyville Senior Living and will be built on undeveloped land at 100 Williamsburg Drive in Shelbyville.
Public documents from the Kentucky Cabinet for Health and Family Services show that a joint venture called Shelbyville Senior Partners LLC will own the proposed 96-bed, 62,000-square-foot assisted living and memory care facility.
Trilogy has a contract to manage the facility for five years with an option to renew, the documents state. Trilogy Health Services is one of Louisville’s largest companies in the aging care space, a defining part of the Louisville business scene.
The majority stakeholder in the JV, SHP Shelbyville LLC, will hold a 56% ownership stake. Two related corporations will hold large enough stakes to require public disclosure, according to CHFS regulatory rules: The Sovereign Co. holds 11% and the Deerfield Co. holds about 28%.
SHP Shelbyville LLC is an entity of Louisville-based DMK Development Group LLC, a senior housing developer.
DMK Development Group CEO and Founder David Kitchen explained that the SHP stands for Senior Healthcare Partners, a specific brand within the company’s business that has been prototyping a type of standalone personal care facility. Kentucky’s regulatory framework identifies facilities that may offer assisted living and memory care as personal care homes.
He also said that the Marshall family, the family behind the two related corporations, owns the land where the facility is slated to go. The Marshall’s contribution to the JV is the undeveloped land for the facility, Kitchen said.
Shelbyville Senior Living will be the fourth such standalone personal care facility that DMK Development has done where Trilogy Health Services is also involved: The two organizations have collaborated on facilities in Danville, Winchester and Bardstown, Kentucky. DMK and Trilogy also plan to establish similar facilities in Owensboro, Kentucky and New Albany, Indiana.
Here’s a breakdown of some specific details of the Shelbyville facility by the numbers:
- 96 total bed licenses
- 23 memory care apartments
- 56 assisted living apartments
- 79 total units
- $10.5 million in construction and site improvement costs
- $3.87 million in estimated revenue two years after the completion of the project
The construction of the project began in March and is slated to take about a year to complete, Kitchen said. The facility is seeking more licenses than units to allow room for family members that live together to share units. The facility will offer units that are large enough for double occupancy, Kitchen said.
The documents also show that the project is financed through Independence Bank. The $13.8 million project is financed with the following instruments:
- $8.9 million construction loan from Independence Bank
- $1.27 million line of credit from Independence Bank
- $2 million PACE equity contribution (More on PACE financing here)
- $1.63 cash equity from Shelbyville Senior Partners LLC