Town Lane Launches Senior Housing Investment Platform With Industry Veteran
The Atlanta-based venture draws on a $1.25 billion fund.
Town Lane, a New York City-based boutique real estate investment firm headed by Tyler Henritze, is teaming up with Kelly Sheehy, a senior housing and health care veteran, to launch Arcole, a senior housing investment platform that is backed by Town Lane’s nearly $1.3 billion opportunistic fund. Based in Atlanta, Arcole will pursue value-add and opportunistic senior housing assets across the U.S.
The platform builds on Town Lane’s senior housing strategy that began in June with the off-market acquisition of two Class A independent living communities with a total of 373 units in Florida—Discovery Village Naples and Discovery Village Sarasota Bay. The investment firm, which was founded in 2024 after raising $1.25 billion of institutional investor capital for its inaugural fund, purchased the assets without any marketing.
The Naples property was completed in 2020 and the Sarasota community in 2022. In August, Town Lane acquired The Goldton at Venice, a 167-unit senior living community in Venice, Fla., completed in 2023, from DMK Development Group.
Including those assets, Town Lane has closed or is under contract on six senior housing properties that total nearly $300 million in gross asset value through four separate transactions out of the fund. The firm focuses on high-quality, well-located assets in the senior housing sector that are benefitting from powerful demographic tailwinds.
Town Lane completed the final close of the fund, Town Lane Real Estate Opportunities Fund I, in late May of last year. The investment vehicle, which had an initial target of $1 billion, is backed by a diverse group of institutional investors including university endowments, charitable foundations, family offices and pension funds. In addition to senior housing, other Town Lane ventures to date have been in the industrial, data center and office sectors.
Experienced leadership
Henritze, Town Lane founder and managing partner and a former longtime Blackstone executive who was the head of real estate acquisitions in the Americas for the private equity giant, said he has known Sheehy for 25 years. Sheehy was previously senior managing director and co-portfolio manager for Artemis Real Estate Partners’ health care fund platform. He brings more than 20 years of experience investing in and operating senior housing and health care assets to the partnership.
Henritze said in prepared remarks Sheehy’s deep understanding of the senior housing and health care sectors will enable the platform to maximize current and future opportunities in an area where they see favorable supply and demand dynamics. Noting Town Lane is forming aligned, relationship-driven platforms around themes with durable tailwinds, Henritze said they believe the combination of Sheehy’s deep sector knowledge and Town Lane’s institutional experience will provide long-term success for Arcole.
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Sheehy, who is a founder and managing partner at Arcole, said in a prepared statement Arcole’s partnership with Town Lane will provide the platform with the resources and access to significant capital to compete and close on compelling senior housing opportunities. He said the platform will continue to build a portfolio positioned to capture strong secular growth and create lasting value for residents, operators and investors.
The platform plans to maximize value through active management across community strategy, management company selection and alignment, operational improvements and strategic capital. Arcole will collaborate with experienced and proven managers to improve lifestyle, quality of care and housing experience for residents. For example Discovery Senior Living was tapped to continue handling operations and leasing at Discovery Village Naples and Discovery Village Sarasota Bay and Atlas Senior Living remained as the property management firm at The Goldton at Venice.
