There’s a new entrant to the senior living sector: Senior Lifestyles Associates, Inc. (SLA), is a privately held corporation that plans to engage in the acquisition and management of assisted living and independent living senior living facilities throughout the country. While it is in the early stages of making its first acquisitions, the company is not short on ambition, targeting a $100 million run-rate within one year of operations and eventually going public.
At this time, the newly formed company is seeking its first acquisitions in the mid-Atlantic region. For now, the company is starting small with two potential property deals on the table in the $4 million to $5 million range.
“We are very much in the frog-kissing mode right now,” Alfonso J. Cervantes, CEO of Trilogy Capital, told SHN of the company’s current acquisition status. “I anticipate we will put together a significant number of offers and timesheets before we acquire something.”
The company is a joint venture between Aeon Partners, a Boca Raton, Florida-based private equity investment corporation, and Trilogy Capital Group, a Delaware limited liability company and private equity firm based in Miami, FL. Founders of the new venture remarked that the growing number of older Americans and the high demand for senior housing prompted their entry into the market.
“Senior living is a burgeoning industry driven by an exploding senior population and demand from an aging demographic with increasing needs,” Demetrios Mallios, managing partner of Aeon Partners, said in a prepared statement. “This demand will drive strong growth in the senior living industry over the next several decades as the baby boomers are the largest generation in U.S. history, constituting a sizable demographic wave.”
Senior Lifestyles Associates hopes to eventually create a pathway to becoming a publicly-owned business.
“After we accomplish a few of those smaller acquisitions, we hope to move up the food chain,” Cervantes told SHN. “We hope to be at a $100 million run rate within our first year of operations, and we intend to take the company public as well.”
As a Florida-based business, the partners told SHN they will be looking at properties within the mid-Atlantic region, but are agnostic about their future and are not exclusively looking in one market.
“”It could be middle market, it could be high-end,” says Cervantes. “As long as the numbers are penciled in, we are opportunistic.”
As new entrants to the senior housing space, the company will rely heavily on its capital background and future partnerships with experienced management.
“We are aware that we don’t know what we don’t know,” Cervantes told SHN. “As we start to acquire these properties, we believe we will be able to find industry management to bring in. Our strength is the capital market side, but we know we need executives who are highly qualified as part of the team.”
Mallios told SHN the venture sees a high demand in assisted living and hopes to create a new housing solution for seniors.
“One of the reasons we are excited as the capital partner is that we believe there is a clear need for a much more robust offering in the assisted living space, especially as we talk about people entering communities earlier in life with independent living,” says Mallios. “The idea is to expand what is the norm today into a new norm.”
Written by Amy Baxter