After Launching Operating Arm, CHG Ready to Push Past 50-Community Mark

Capital Health Group’s decision to form its new management arm, Elegance Living, has been a long time coming, founding partner and Managing Principal Ken Assiran told Senior Housing News.

“The ultimate structure that we were looking for was to become a full owner-operator, where our interests were fully aligned. We wanted to have to have our management company fully aligned with our investment company and our other supportive companies, like our construction and development [arms],” he said.

This vertical integration now has been achieved, as Capital Health Group prepares to reach a new benchmark for scale. The company is poised to surpass the 50-community mark by next year.


Founded in 2006, Baltimore-based Capital Health Group has amassed a portfolio of 46 senior housing communities in 16 states, totaling 4,150 units through new development and acquiring distressed assets.

Last month, Capital announced the launch of Elegance Living and the hiring of Josh Krull as CEO. Krull, formerly senior vice president, operations chief of staff at Louisville, Kentucky-based operator Atria Senior Living, assumed his new role on April 1.

Krull joins Elegance during a stressful time. The senior living industry continues to contend with the fallout from the ongoing coronavirus pandemic, placing additional pressures on an operator assuming management of a large portfolio. All but one of Capital Health’s senior housing assets have transitioned to Elegance, and Krull has provided a steady hand throughout, Assiran said.


“[Krull’s] first priority is the safety and care of our residents. The nuts and bolts of managing through a pandemic [such as procuring] safety equipment and [personal protective equipment], testing and quarantining our team and residents, how to deal with visitations, how to deal with meals [and keep] people involved in activities. [Our long-term objectives are] what do we do post-pandemic so that we’re right up and running?” he said.

Capital Health’s portfolio and pipeline focuses on middle-market and market-rate senior housing, across the care spectrum. The firm currently has seven new communities under construction in California, Virginia and Washington, offering Independent Living, assisted living and memory care. The first is set to open later this year and will continue mid-2021.

Elegance’s goal will be to stabilize those communities, then identify capital expenditure needs across its existing portfolio and implement best management and operating practices at its communities.

Capital Health looks for development and acquisition opportunities in primary markets with high barriers to entry. While other private equity investors are raising capital to target assets that have become distressed from the pandemic, Assiran is taking a more conservative approach.

“We [focus] within [our existing footprint]. We’re committed to our markets and where we will grow regionally,” he said.

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