Real estate firm Compatriot Capital has acquired an equity stake in Silverstone Senior Living that will fund growth plans for the next decade and potentially make it a new industry heavy-hitter in senior living development.
Compatriot Capital is Dallas-based Silverstone’s largest limited joint venture partner, and the two companies are collaborating on investments in the Washington, D.C. area.
Dallas-based Silverstone Senior Living — an affiliate of Silverstone Healthcare — has a 13-property portfolio valued in excess of $1 billion. Silverstone is more favorably primed to grow in the coming months and years thanks to its new investment, according to Chairman and Co-CEO Denny Alberts.
“Growth is the purpose here and to have the balance sheet that we have now and the relationship with Compatriot is just the formula we need,” Alberts told Senior Housing News.
Alberts declined to share the exact dollar amount of the investment from Compatriot.
Compatriot’s equity stake investment, together with Silverstone’s leadership structure sets up the senior living developer to become “a major force in the senior living industry,” Alberts said in a press release.
For Alberts, becoming a so-called major force means growing in new and existing markets. “But I’m not going to put a number on it,” Alberts told SHN.
Part of his thinking regarding growth is that headwinds will make it difficult for other companies to compete in the current environment.
“We’re sitting here seeing opportunities where some developers are not able to get things off the ground because of equity or debt financing,” Alberts said.
“It’s a really good time for us to not only look at new sites that we identify; but, we’re also being brought opportunities from other developers,” he added. “So I think the combination of the two will be an important part of the future.”
Silverstone this May deepened its partnership with senior living operator Watermark Retirement by announcing the third community in their collaborative brand called the Elite Collection — a luxury brand of senior living communities developed by Silverstone and operated by Tucson, Arizona-based Watermark.
And that relationship will continue to expand with the Compatriot investment, mostly in the eastern third of the U.S., according to Alberts.
“It’s been hand-in-hand with Watermark, and we’ll continue to grow with them,” he said.