Smith/Packett Med-Com, LLC and Formation Capital, LLC recently announced the acquisition of 18 assisted living and memory care facilities (1,318 total beds) that are located in North Carolina. Six of the facilities completed construction in 2007 with the majority of the remainder developed after 1997. The properties were owned by Wakefield Capital and leased to Agemark, a fully-integrated management services company based in Hickory, North Carolina.
The new Smith/Packett-Formation Capital joint venture acquired both the fee and leasehold interest for a combined purchase price of approximately $98MM. The facilities will be managed by the newly formed Bluebird Senior Living Management. Bluebird Senior Living Management will be led by Deborah Petrine, Founder and CEO of Commonwealth Care of Roanoke, Charles Trefzger, founder of Agemark, and Susan Eckert, President of Harmony Senior Services, an affiliate of Smith/Packett. The communities have a current occupancy rate of approximately 77%. Financing for the acquisition was provided by GE Capital.
“We are pleased to enter into this joint venture with Formation Capital. Arnold Whitman was quick to understand this transaction and the action necessary to further increase the value of the portfolio. North Caroline is a state with fair reimbursement for assisted living and memory care residents where new development is controlled by Certificate of Need regulations,” stated James Pietrzak, a partner of Smith/Packett.
“Jim Smith and James put together an outstanding transaction and an exemplary team to manage the properties. We are excited about our new joint venture and look forward to adding these facilities to our network of regional and long-term and senior care providers,” said Arnie Whitman of Formation Capital.