A new senior living operator centered on providing memory care has a new capital partner and plans to grow by turning around distressed communities.
The Dallas-based operator, Ally Senior Living, will have four communities under operation in June. But the company is poised to grow in the months to come, as it has partnered with a to-be-revealed private equity backer with a $100 million fund to buy distressed assets, according to Founder and CEO Dan Williams.
“We’re going to specialize in turnarounds,” Williams told Senior Housing News.
Williams, who has experience turning around senior living communities and is the former president and COO of Seasons Living, said the company’s first goal will be to build up a base of operations through acquisitions and new management of communities in need of an operational overhaul.
Initially, Ally Senior Living will target Class A or Class B properties in top 50 metro areas around the country, with a preference for standalone memory care opportunities. The company has the “bandwidth and knowledge” to handle other communities through the care continuum, including active adult. And, Williams said the company also will consider third-party management opportunities, provided the opportunity is worthwhile.
“We want to build clusters and build regions, if we can,” Williams said.
Currently, the operator has communities in California and Florida.
Although many industry-watchers predicted the Covid-19 pandemic would lead to a wave of opportunities to buy senior living communities at below replacement costs, that trend has yet to largely materialize in 2022. Even so, Williams said he has seen a growing number of opportunities come across his desk in the last two months.
Once Ally Senior Living acquires or begins managing a senior living community, the operator takes a focus on fundamentals such as outreach, home visits, lead follow-up and employee engagement and recognition. The communities also will be plugged into an electronic health record system from tech provider Alis.
“It’s those kinds of fundamentals that will turn a building around pretty quickly,” Williams said.
Ally Senior Living also will look to promote from within the company instead of hiring out for new leaders to help build a culture of “hope, growth and opportunity,” Williams said. The operator is also planning to issue its corporate and regional leaders an ownership stake of the company, though he added exactly how is still being worked out.
Looking ahead, Williams anticipates Ally Senior Living will reach eight communities by the end of the year. And beyond that, he sees the company adding about five to six communities per year. Once the company builds up a suitable base of operations, Williams said he will look to tackle other industry issues, such as solving the middle-market — but one thing at a time.
“Our mantra is to be innovative, and we are experienced,” he said.