The Carlyle Group to Reposition Ga. Senior Living Community After JV Acquisition

Atlanta-based Formation Development Group and an affiliate of Washington, D.C.-based The Carlyle Group recently acquired a Georgia senior living facility in a joint venture transaction for an undisclosed price. Senior Capital Advisors brokered the sale.

“The combination of Formation Development, being based in the Atlanta market and with its extensive development experience, and The Carlyle Group, with its strong capital base, made for a quick transaction,” said Bruce Gibson, principal at Senior Capital Advisors. “It was literally two weeks from the start of marketing to the time we were under a letter of intent.”

The Renaissance on Peachtree is a 15-story, 228-unit independent and assisted living community in the Buckhead neighborhood of Atlanta, Ga.

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The joint venture plans to spend approximately $7 million to renovate the interior of the building with enhancements that will include upgraded common areas and individual apartments, along with new dining and entertainment venues, activity spaces, and wellness facilities.

Operator Leisure Care, LLC will manage the property and will continue to offer The Renaissance on Peachtree’s full range of services, which include fine dining, concierge service, and a fitness center. The company will also implement its other programs, including a health and fitness program, a travel program, and a cognitive ability program.

Formation Development Group is partnering with The Carlyle Group for redeveloping the community.

This acquisition marks the thirtieth investment by Carlyle’s U.S. Real Estate team in the senior housing sector, and the first senior housing investment in its recently-raised $2.34 billion Carlyle Realty Partners VI Fund.

“We continue to have an interest in acquiring senior housing properties across the country, and in partnering with first-class partners like Formation and Leisure Care,” says Carlyle Managing Director Thad Paul in a statement.  “This property has all of the attributes that we look for: high barriers to entry location, renovation and repositioning upside, and at a discount to replacement cost.”

Written by Alyssa Gerace

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