Calson Management Inks JV With RSF Partners, Plans Regional Growth

Senior living operator Calson Management and private equity firm RSF Partners are embarking on a joint venture equity agreement for the development of a community near Silicon Valley.

The two companies expect it will be the beginning of a “long and harmonious relationship,” with plans to further expand throughout primary and secondary markets with high barriers to entry in California. Calson is also acting as RSF’s sole operating partner in the state.

The JV will build upon the eight communities in California that Calson currently manages while providing Dallas-Based RSF Partners a new foothold in The Golden State.


The JV’s first community – dubbed Bascom Senior Living in Campbell, California – is planned to have 83 units for assisted living and memory care residents, with rates between about $6,000 and $11,000 per month. Total project costs register just north of $49 million.

JLL worked on Calson Management’s behalf to arrange an equity partnership for the community with RSF Partners.

Today, Calson Management’s current growth pipeline has never been more full. The company has six communities currently under construction — including Bascom Senior Living — and three more projects under development.


And looking ahead, Calson expects even more expansion in California, where obtaining licensing for new construction is particularly nuanced. The company already has deep experience operating communities in the state and understands demand drivers there, according to Jason Reyes, managing partner with Calson Management.

“It makes it very difficult for other competitors to come into the market,” he said. “And because of that, there are very few communities that have been built in the last five years.”

New development is also just harder to accomplish in 2022, given the high cost of construction materials and labor. But Reyes believes Calson also holds an advantage over its competitors in that arena, too.

“We have a significant amount of experience … and we primarily for the last 10 years focused only on ground-up construction,” he said. “So, we have great relationships with subcontractors.”

Prior to working with RSF, Calson had partnered with Blue Mountain Enterprises – a subsidiary of Meyer Holdings (ASX:MYR) – to grow in California.

“Ten years later we started looking at our portfolio wondering about the next steps for Calson Management,” Reyes said.

The company landed on RSF Partners with JLL’s help. Both share a “small family culture” that makes them a good match for future growth, and Calson was also attracted to the private equity firm’s expertise in the senior living space.

Though it is only months in the making, the new collaboration between RSF and Calson is already starting to bear fruit, with both companies identifying growth opportunities they think would be a good fit for the other.

“In such a short time period, they brought deals to the table and said, … ‘We would like for you to take a look at this deal and we think it’s a great opportunity,’” Reyes said. “That is, to me, very unique, very exciting, and very aligned with our interests.”

Calson is not the only senior living operator with a growth strategy focused on the state of California. Perhaps the most notable example of that philosophy at work is found with Oakmont Management Group, which has grown to become a prominent regional player with 51 communities; nearly all of them in California.

“This is where our roots are, this is where we’re comfortable,” Reyes said. “There is plenty to do here before we start expanding out of this state.”

Companies featured in this article:

, ,