CHICAGO — Chicago-based JLL has brokered the $725 million sale of a seniors housing portfolio comprising 20 communities located primarily in the Sun Belt, Northeast and Midwest markets. Chicago Pacific Founders and Grace Management Inc. sold the portfolio to Ventas Inc. (NYSE: VTR) in an all-cash transaction.
Roughly two-thirds of the properties are independent living communities, with the remainder of the assets falling into the categories of assisted living and memory care. The communities are spread across 14 states including Alabama, Arizona, Florida, Illinois, Kansas, Maine, Michigan, Nevada, New York, Ohio, Oklahoma, South Carolina, Tennessee and Texas.
Chicago Pacific Founders and Grace Management, which are affiliate firms, owned the portfolio properties within an investment vehicle titled CPF Living Fund I. Jay Wagner, Rick Swartz, Jim Dooley and Sean Kirk of JLL’s Seniors Housing Capital Markets team, as well as Ted Flagg of Jones Lang LaSalle Securities (an affiliate of JLL), represented the sellers in the transaction.
“As one of the largest seniors housing transactions closed year-to-date, this is a meaningful indicator that appetite for scaled seniors housing portfolios is back,” says Wagner. “The significant supply-demand imbalance, precipitated by tepid recent development levels, is setting up the markets for an incredible run on occupancy and margin growth over the medium term.”
Grace Management will continue to manage the properties. The portfolio recently underwent roughly $49 million in capital improvements. On average, the assets have been renovated within the past four years.
Based in Chicago and San Francisco, Chicago Pacific Founders is a private equity firm focused on investing in growth companies within value-based care, healthcare services and AI and tech-enabled services. Grace Management is a senior living operator based in Maple Grove, Minn., and serves as the property management affiliate of Chicago Pacific Founders.
Based in Chicago, Ventas is an S&P 500 REIT that owns and operates 1,350 properties in North America and the United Kingdom, including approximately 800 seniors housing communities. The firm’s stock price closed on Monday, Nov. 4 at $64.35 per share, up from $44.28 a year ago, a 45.3 percent increase.
— Hayden Spiess and John Nelson