CHICAGO — Chicago-based JLL has brokered the $725 million sale of a seniors housing portfolio comprising 20 communities in the Sun Belt, Northeast and Midwest markets. Chicago Pacific Founders and Grace Management Inc. sold the portfolio to Ventas 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 owned the portfolio properties in the CPF Living Fund I. Jay Wagner, Rick Swartz, Jim Dooley and Sean Kirk of JLL’s Seniors Housing Capital Markets team and Ted Flagg of Jones Lang LaSalle Securities (an affiliate of JLL) represented the sellers in the transaction.
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.
“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.”