New partnerships are paving the way for key growth opportunities for LCS, which announced Wednesday a pipeline of projects valued at over $1 billion.
“Our industry is growing,” says Ed Kenny, chairman and CEO of LCS, telling SHN this is the largest pipeline the company has had in the past six or seven years.
LCS’ investment group has invested more than $50 million in the senior living industry in the past three years. LCS has a group of companies that provide a range of services including strategic planning, operations management, and marketing and sales management. LCS serves 33,000 seniors.
LCS development is broken down into three different sectors: continuing care retirement communities (CCRCs), repositioning efforts and the assisted living/independing living product, Kenny says about the company’s pipeline.
The company’s CCRC sector comprises about $830 million of its $1 billion pipeline, he says, adding that that includes three new CCRCs, and expansions and second phase developments for three other CCRCs.
A number of LCS’ total portfolio of 126 communities nationwide are older and require repositioning, he says, adding that repositioning efforts account for about $245 million of the $1 billion pipeline.
“The company is also getting into the independent living/assisted living prototype — and that is north of $145 million,” he says. “We have a favorable outlook on the AL/IL product for the years ahead.”
In addition to the company’s own developments, LCS also develops for third-party groups.
“About 20 to 25% of that $1 billion pipeline is third-party work,” he says.
Earlier this year, LCS diversified its portfolio beyond continuing care retirement communities (CCRCs) through the acquisition of Encore Senior Living, a management company based in Portland, Ore. with nine communities across the country.
Familiar faces at the company will also be taking on new leadership roles in response to the company’s growing development and investment portfolios, the company announced Wednesday.
Kent Larson was promoted from senior vice president/director of development to executive vice president/director of development; Allison Pendroy was promoted from finance director/asset manager to vice president/director of asset management; and Dan Lahey was promoted from finance director/mergers and acquisitions to vice president/director of investments.
Larson is the leader of LCS Development, an LCS company. He joined the organization in 1980.
“[He] has extensive experience in construction, design, and project management,” LCS says.
Larson will oversee development of all CCRCs, rental, assisted living, and memory care communities. He serves on the LCS Board of Managers and LCS Holdings Board of Directors. He holds a Bachelor of Science degree in construction engineering from Iowa State University and an MBA from Drake University.
Pendroy joined LCS in 2009, working in finance for Equity Communities. During her time at LCS, she has focused on the company’s senior living real estate portfolio developing financial projections and performance metrics, investment valuations, partner relationship building and securing capital for key projects.
In her new role, Pendroy will oversee the investment management performance of the LCS real estate portfolio. She earned a Bachelor of Business Administration in finance from The University of Iowa, with a minor in Spanish and emphasis in accounting.
Lahey joined LCS in 2008, working in the areas of tax and capital markets. In 2010, he accepted the role of finance director/mergers and acquisitions.
“He has been instrumental in the growth of the LCS real estate portfolio and helped identify and negotiate capital sources and joint venture partnerships,” LCS says.
In his new role, Lahey will lead the company’s strategic investment activities, including mergers, acquisitions, joint ventures, and leases. Lahey has a Bachelor of Arts degree in accounting and finance from Wartburg College.
Written by Cassandra Dowell