Target Information

Berkadia has announced the successful sale and financing of two prestigious Class A senior housing communities: Grand Living at Citrus Hills located in Hernando, Florida, and Grand Living at Bridgewater situated in Iowa City, Iowa. These communities specialize in independent living, assisted living, and memory care services, with a combined total of 337 units. The sale was conducted on behalf of the sellers, PGIM Real Estate and Ryan Companies, by Berkadia's dedicated team.

Grand Living at Bridgewater, constructed in 2018, consists of 170 units and is strategically located near the University of Iowa campus, VA Medical Center, and Iowa City Municipal Airport. The facility offers a robust array of amenities, including multiple dining options, a private chapel, a meditation center, scheduled transportation via a chauffeured luxury vehicle, and a theater that accommodates over 150 guests.

Meanwhile, Grand Living at Citrus Hills, built in 2017, features 167 units and is uniquely positioned to provide access to HCA Florida Citrus Hospital, golf courses, and shopping centers. The community is distinguished by its comprehensive amenities, which include various dining venues, a state-of-the-art fitness studio, outdoor recreation spaces, and a heated indoor pool. Notably, it is the only Class A senior living community in the Homosassa Springs area.

Industry Overview

The senior living industry in the United States, and specifically in states like Florida and Iowa, has been experiencing significant growth driven by the aging population and increased demand for senior housing options. The rising number of baby boomers entering retirement age has led to a surge in the need for diverse senior living solutions, ranging from independent living to assisted living and memory care facilities.

Florida, renowned for its favorable climate and lifestyle, has long been a desirable destination for retirees. The state has seen an influx of senior living developments, catering to an increasingly discerning demographic seeking high-quality care and lifestyle options. This trend is accompanied by the ongoing evolution of facility amenities, with emphasis on wellness, social engagement, and customized care.

In Iowa, the growing senior population has also prompted advancements in senior living services. Communities are evolving to better meet the needs of their residents, often incorporating technology and innovative care solutions. As competition in the market increases, the demand for top-tier senior housing options remains robust, driving further investment into this sector.

Rationale Behind the Deal

This transaction represents a strategic investment in high-quality senior living communities that align with the demographic trends favoring independent and assisted living options. By acquiring these properties, Chicago Pacific Founders (CPF) aims to leverage their established operational capabilities and management expertise through their subsidiary, CPF Living Communities, which will enhance the overall resident experience and occupancy rates.

The choice to partner with Grace Management, Inc., an affiliate property management company, underscores the commitment to maintaining service excellence and operational efficiency in these communities, signaling confidence in the potential for long-term growth and stability within this sector.

Investor Information

Chicago Pacific Founders is a prominent investment firm that specializes in the senior living and healthcare sectors. With a focus on enhancing the quality of life for seniors, CPF integrates operational management with investment capabilities to maximize value. Their strategic acquisitions, such as this transaction, are poised to strengthen their position in the rapidly expanding senior living market.

With a dedicated team of professionals backed by extensive industry knowledge, CPF Living Communities is positioned to implement innovative solutions and operational improvements, ensuring that the acquired properties meet the evolving needs of their residents. Their approach is centered around creating engaging, high-quality living environments that promote well-being and independence.

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The acquisition of Grand Living at Citrus Hills and Grand Living at Bridgewater is widely considered a strategic and timely investment. Given the demographic trends indicating an increasing elderly population, this investment aligns well with the projected growth in demand for senior living solutions. The established reputation of both properties enhances their attractiveness to potential residents, providing a strong foundation for future success.

Additionally, the integration of experienced property management through Grace Management will likely improve operational performance and resident satisfaction. This focus on service excellence is expected to drive continued interest and occupancy, making these communities a valuable addition to CPF's investment portfolio.

Moreover, with the backing of Freddie Mac for acquisition financing, the stability of this deal is further reinforced. It indicates strong market confidence and support for investments in senior housing, enhancing the overall financial viability of these communities.

Overall, the transaction appears to be a prudent investment in a thriving sector, promising both short-term returns and long-term growth potential in a market characterized by increasing demand for quality senior living options.

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