The new operating company led by former Holiday Retirement CEO Kai Hsiao is now officially managing a 76-property portfolio of senior living properties.
The operator, Eclipse Senior Living (ESL), is jointly owned by Chicago-based real estate investment trust (REIT) Ventas Inc. (NYSE: VTR), which has a 34% stake. Eclipse management owns the remaining 66%.
Ventas, which is one of the largest owners of senior housing in the nation, owns the real estate of the 76-property Eclipse portfolio. These communities will retain their branding as Elmcroft Senior Living, the REIT announced Tuesday. Previously, Ventas owned the assets under a triple-net lease structure. In October 2017, Ventas revealed the plan to transition management of the portfolio to the new operator led by Hsiao and move to a joint ownership structure.
“We are excited to complete this strategic transaction, which continues our superior track record of establishing leading operating platforms in the highly fragmented seniors housing space,” said Ventas Chairman and CEO Debra A. Cafaro, in a press release. “With strong alignment and shared interest between ESL and our cohesive and innovative Ventas team, we are expertly positioned to realize value from the portfolio and benefit from the coming demand wave of the growing senior population.”
She also expressed thanks to Pat Mulloy and Tim Wesley, co-founders of Elmcroft. Mulloy has served as Elmcroft CEO since 2005.
Elmcroft offers a range of senior living options, including independent living, assisted living and memory care. The communities are located in 18 states across the country; Pennsylvania, Tennessee and Texas are among the states where the company has a large presence.
Most Elmcroft community and field-level personnel have been hired by Eclipse, Ventas stated in the press release.
In the C-Suite, Hsiao is joined by his former Holiday colleague Shamim Wu, who is Eclipse’s COO. Holiday is the nation’s largest independent living provider. Hsiao served as CEO of Holiday from 2013 to 2015, and Wu was Holiday’s executive vice president of sales from 2012 to 2016.
“We greatly value Ventas’s partnership as we establish a leading seniors housing management platform caring for approximately 6,000 seniors and drive upside from the portfolio,” Hsiao stated in the press release. “We welcome the talented personnel from Elmcroft who strive to serve our residents every day. We look forward to working closely with Ventas as we continue to build scale and sophistication and deliver high-quality care to a rapidly growing aging population.”
Written by Tim Mullaney