Presbyterian Homes & Services (PHS) has acquired three senior living communities in the Minneapolis–Saint Paul metropolitan area from development firm Oppidan for about $100 million.
The communities changing hands — The Pillars of Shorewood Landing, The Pillars of Highland Park, and The Pillars of White Bear Lake — range from 110 to 160 units.
Ebenezer Management Services, which is the senior housing arm of Minneapolis-based Fairview Health Services, operates the three communities, and will continue to do so through at least 2022 to aid a smooth transition, according to PHS.
“The Pillars” is a brand name belonging to Excelsior, Minnesota-based Oppidan, and PHS plans to rebrand the communities using input from current residents.
PHS has worked closely with Oppidan, and the two companies share “positive synergies” in their ownership, development and operational styles, according to Jon Fletcher, vice president for project development at Presbyterian Homes & Services and its project development arm, Senior Housing Partners.
“We were very excited about the opportunity to acquire these three communities, all in strong locations, from such a respected developer, and look forward to welcoming the staff and residents into the PHS family,” Fletcher told Senior Housing News.
The three-community sale officially closed on Dec. 16. Average occupancy rates for the communities were above 90% when PHS acquired them, Oppidan CEO Joe Ryan told Minneapolis-Saint Paul Business Journal Tuesday.
Minnesota-based Presbyterian Homes and Services is among the top 10 largest senior living nonprofits in the U.S., ranking no. 4 in the 2021 LZ200 report with more than 8,500 units under management.
Despite the sale in Minnesota, Oppidan is still building a senior living “stronghold,” with growth planned elsewhere in the state as well as in California and North Carolina. The company currently owns four communities under The Pillars name, and has six more under construction or soon to break ground, according to a press release.
“We’re doubling down on our efforts and focusing on senior housing developments, and this sale strengthens our position to continue investing in opportunities in Minnesota and beyond,” Ryan said. “We’re in the best financial position in our 30-year history.”
Census rose steadily at Oppidan’s communities in 2021, and the operator has averaged about a 9% gain in occupancy across its entire senior living portfolio since the beginning of last year.
Oppidan first entered the senior housing space in about 2014. Three years later in 2017, the company laid out a $400 million development pipeline with partners including Ebenezer on board.
Companies featured in this article:
Ebenezer Management Services, Oppidan Investment Company, Presbyterian Homes & Services
