Formation Capital Acquires Senior Housing Portfolio for $400 Million

Formation Capital announced today the acquisition of a 36-property senior housing portfolio for approximately $400 million with investment partner SAFANAD, a global principal investment house, from an undisclosed seller.

Senior Lifestyle Corp., based in Chicago, will continue to manage a portion of the communities, while Frontier Management, Prestige Senior Living, and other senior living management companies are also being retained as operators.

The portfolio has a footprint in 13 states and contains more than 2,600 units that are approximately 92% occupied. About 65% of the units are assisted living, while 18% are independent living and the remaining 16% are memory care.

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“This transaction demonstrates Formation Capital’s continued focus on expanding its real estate footprint in private pay seniors housing,” said Brian Beckwith, Formation Capital’s Chief Executive Officer. “We believe this portfolio presented a rare opportunity to acquire high-quality real estate managed by best-in-class operating partners. We are excited to begin new strategic relationships with Senior Lifestyle Corporation and Prestige Senior Living and continue our strong relationship with Frontier Management.”

In September 2012, Formation Capital and SAFANAD acquired a 68-property skilled nursing portfolio for $750 million. In 2011, the two entities acquired 36 senior care facilities in three separate deals.

Written by Alyssa Gerace

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