CNL Healthcare Properties Doubles Down on $1 Billion Senior Housing Capital Raise

Following the success of a previous capital fundraising campaign that already raised just north of $1 billion, CNL Healthcare Properties is doubling down with plans to raise an additional $1 billion this year to acquire and develop senior housing and health care properties nationwide.

The Orlando, Fla.-based non-traded real estate investment trust (REIT) last week entered its secondary “follow-on” offering of its common stock stemming from a capital raising campaign the company initially launched in 2011, which has already raised a little over $1.1 billion in total equity as of the end of 2014.

“We’re looking to match that,” Kevin Maddron, senior managing director at CNL Healthcare Properties, told SHN.

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CNL Healthcare Properties intends to use the net proceeds from the follow-on offering to continue its current theme, which Maddron says is finding opportunities for acquisition and development of senior housing, medical office buildings (MOBs), acute and post-acute assets.

“This secondary offering will allow us to continue to focus on exactly what we’ve done in 2014 and prior, which is acquire and develop across those four property types,” Maddron said.

CNL Healthcare Properties currently owns 100 properties, 55 of which are senior housing communities, 32 MOBs, four acute care hospitals and nine post-acute care properties.

While the REIT is focused primarily on acquiring and developing independent, assisted living and memory care facilities on the senior housing segment of its portfolio, it has been making substantial moves in the MOB space in the past year.

In one of its most recent deals, in December the company acquired a portfolio of nine Class-A MOBs in the southeastern U.S. for approximately $238 million. Located across North Carolina and Georgia, the properties amass a combined 907,300 square feet.

“We have been fairly active in the MOB market and we will continue to focus on bringing more of that asset class into the fund over time,” Maddron said.

But when it comes to senior housing, CNL Healthcare Properties says its biggest opportunity this year lies in building relationships with operators, its ability to execute on transactions and the company’s development aspect of the business.

“We do that to maintain a healthy age of our portfolio, address the capital needs of our operator and developer partners and to make this more attractive in the acquisition market,” Maddron said. “We’ll continue to focus on development and execute on our acquisition strategy. Opportunity lies in both of those.”

Written by Jason Oliva

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