Following the launch of its senior living brand last year, a Dallas-developer has big plans for the rest of 2014 and beyond, including a name change and a pipeline of over $100 million in new construction slated for the next year.
Formerly known as Caddis Partners, the company rebranded itself last week, updating everything from its logo, website and even shortening its name to simply “Caddis.”
The rebrand not only enhances the company’s visual appeal with bright imagery and energetic colors, but it better conveys Caddis’ expanded capabilities and the experience it has gained since its founding, which has included a greater focus on senior living and medical office buildings (MOBs), said Jason Signor, CEO and partner at Caddis.
“We’ve grown dramatically over the past 4-5 years, so we wanted the brand to reflect the change in the company and how we’ve grown from a regional developer to one that’s more nationally based,” Signor told SHN.
Previously a regional developer operating predominantly in the Texas market, Caddis has developed or acquired over 2 million square-feet of medical assets valued over $500 million since its inception. In the last year alone, the company invested more than $100 million in healthcare real estate, including its Heartis senior living brand, now only a little more than a year into its existence.
Over the next two years, Caddis plans to build up to 15-20 new senior living communities under the Heartis brand, including 5-6 new projects next year which could range between $100 million and $125 million.
Caddis currently has five Heartis communities under construction and another six in various stages of development, totaling 11 projects, or about 25%, of the firm’s owned and managed healthcare assets across the southern half of the U.S., Signor said.
Of those 11 properties, two projects are currently under contract to close next month while two more are expected to close by the end of the year, by which at that time Caddis expects to have about 1,000 units either open or under construction in Texas alone.
Heartis communities have historically been assisted living and memory care property types, ranging anywhere from 80 to 100 units per community, however, the company already has a few projects “on the board” that will feature an even split of independent living and assisted living units totalling up to 150 units, Signor said.
“The origin for us is healthcare—how we can serve both residents and patients in a way where we can make a difference in providing communities and facilities that serve those needs on a full-continuum,” he said. “Senior living is a natural expansion into that.”
Despite its dabbling presence in the senior living market in the years prior to the Heartis launch, Caddis has been fairly active within the M&A space.
In 2012, the company sold eight MOBs to Griffin-American Healthcare REIT II and American Realty Capital Healthcare Trust for approximately $100 million. Since then, both buyers have been acquired by publicly-traded real estate investment trusts (REITs) NorthStar Realty Finance Corp. (NYSE: NRF) and Ventas, Inc. (NYSE: VTR) for whopping sums of approximately $4 billion and $2.6 billion, respectively.
As Caddis moves forward as a rebranded company, it is actively developing Heartis communities in several opportunistic markets throughout the U.S., including Illinois, Atlanta, Ohio and Pennsylvania.
“Historically, Caddis was focused predominantly on clients in Texas. But within the past year, we’ve expanded significantly in the Southeast region and into new markets in the Southwest,” Mattox said. “We are excited about strategic expansion into other regions, such as the Midwest, in the near future.”
Written by Jason Oliva