CHICAGO — Chicago Pacific Founders has sold a 20-property seniors housing portfolio to Ventas for $725 million. JLL brokered the all-cash transaction. The portfolio comprises communities in the Sun Belt, Northeast and Midwest markets.
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 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, an affiliate of Chicago Pacific Founders, 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.”
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.
Ventas is based in Chicago 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.