Ventas Buys 20-Asset Senior Housing Portfolio
JLL arranged the $725 million recapitalization of the properties.
Chicago Pacific Founders has sold a 20-asset senior housing portfolio spanning the Sunbelt, Northeast and Midwest markets to Ventas. JLL arranged the $725 million recapitalization of the portfolio.
Grace Management will continue to manage all 20 communities. The portfolio has undergone a $49 million improvement plan. It has an average renovated vintage of 2020.
Over two-thirds of the portfolio comprises of independent living while the remainder is assisted living or memory care units. The properties are in Alabama, Arizona, Texas, Tennessee, New York, Maine, Florida, Illinois, Kansas, Michigan, Ohio, Nevada, Oklahoma and South Carolina.
Jay Wagner, co-lead of JLL’s National Senior Housing team, told Multi-Housing News that a given the solid underlying operating fundamentals, such as the boom in age 80+ population growth, more large-scale investors are looking at senior housing.
“In terms of appetite, the market as a whole has greater certainty around value now than it did a year ago, giving bidders more confidence to bid on larger opportunities,” Wagner said.
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JLL facilitated the all-cash transaction, one of the largest national senior housing portfolio sales of the year, for the properties previously owned in the CPF Living Fund I.
JLL’s Seniors Housing Capital Markets team, which represented the seller, was led by Senior Managing Directors Jay Wagner and Rick Swartz, Director Jim Dooley, and Analyst Sean Kirk. Representing the seller from JLL’s M&A team, Jones Lang LaSalle Securities, an affiliate of Jones Lang LaSalle Americas, was Senior Managing Director Ted Flagg.
Wagner also told MHN that the new construction starts are a quarter of what they were in 2018. “As of now, the industry has fully recovered from the occupancy decrease during the pandemic with the expectation to exceed 90 percent, nationally, by the first quarter of 2026,” he said.
In the third quarter of this year, senior housing occupancy rates improved for the 13th consecutive quarter, up to 86.5 percent. Absorption also increased by 14 percent compared to the previous quarter, outpacing inventory growth.
