A new senior housing operating company, Capital Health Holdings, has emerged from Akard Street Partners, the investment partnership announced Wednesday. The new entity will acquire and selectively develop private pay senior housing assets with a focus on assisted living and memory care facilities, Akard Street Partners said.
“Due to an aging population, the healthcare industry is one of the fastest growing sectors, thus senior housing has fared better than the overall U.S. real estate market in recent years,” said Patricia Gibson, president of Hunt Realty Investments, a partner in Akard Street Partners.
Capital Health operates with its operating partner Capital Health Group (CGH), a privately held real estate company formed in 2006 and has established an operating platform with acquisitions development, asset management and property management capabilities. The company has acquired or developed 19 properties, with total project costs of $230 million and has a current portfolio of 15 assets.
Capital Health will invest in underperforming senior living properties and will reposition, renovate and/or expand them, acquire distressed debt with the ability to take ownership of the underlying property, and will develop projects in infill locations with high barriers to entry, the company said. It is actively seeking equity capital to leverage Akard Street Partners’ capital commitment and anticipates investing in approximately $350 million of senior housing assets over the next two to three years.
CHG has an exclusive sourcing relationship with Capital Funding Group, an affiliate and healthcare financing firm, which has originated and services $2 billion of senior housing loans.
Written by Elizabeth Ecker