Waterton Acquires Controlling Interest in Owner-Operator Pathway to Living

by Jeff Shaw

CHICAGO — Waterton, a real estate investor and operator, has acquired a controlling interest in Pathway to Living, a seniors housing owner-operator. 

Both companies are based in Chicago. Terms of the acquisition were not disclosed.

“The relationship began in 2015 with Waterton holding a 50 percent interest and three out of six board seats on the Pathway to Living board, and was increased to a controlling interest of 80 percent in 2019,” says David Schwartz, CEO, chairman and co-founder of Waterton. “We have been making investment decisions alongside Pathway to Living for five years.”

The strategic partnership between the two companies brings together complementary strengths and expertise to take advantage of growth opportunities within a high-barrier-to-entry sector benefitting from favorable and sustainable long-term fundamentals, according to Waterton. The companies focus on addressing middle-income demand in the sector through value-add acquisition and development of independent living, assisted living and memory care.

Pathway to Living owns and/or manages 29 communities comprising over 2,600 units. Additionally, three communities are currently under development with planned delivery dates in 2019 and 2020 totaling over 300 units. 

“I see tremendous opportunity on the horizon in the senior sector,” says Schwartz. “This asset class continues to see steadily attractive investment spreads, and this marriage of investment experience and development and operational know-how between Waterton and Pathway to Living will be attractive to capital partners while addressing an important societal need.”

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