Pegasus Senior Living is now managing a portfolio of eight senior living communities in Texas and New Mexico previously operated by LifeWell Senior Living.
The portfolio includes 652 assisted living and memory care units and represents LifeWell’s Legacy-branded portfolio, Pegasus Senior Living CEO Chris Hollister said. The transition is set to take effect Sept. 1, according to a press release.
With the move, Pegasus Senior Living now operates 43 senior living communities in 13 states.
Hollister said the growth in Texas is partly aimed at appealing to health care providers such as hospital systems, rehab, hospices and integrated care organizations.
Hollister added the communities in question have “good bones” and fit into Pegasus’ strategic plans to grow overall.
LifeWell still operates active adult communities after the move, Hollister said.
A small group of investors primarily based in Houston, Texas, owns the communities, and Pinpoint Commercial was the developer.
The leadership team from Pegasus is in the process of touring the eight new communities to determine what work or upgrades they might need. Hollister said most are “doing quite well” for occupancy, and others are currently utilizing agencies for staffing solutions.
“We really think we can add value to the LifeWell communities with this approach of getting rid of agency,” he said. “Agency and occupancy … are by far the two biggest opportunities right now.”
Looking ahead, Hollister said Pegasus is seeking to expand more in the “Lone Star State,” with more acquisitions potentially coming down the pike.
Among Pegasus’ goals before the end of the year is to increase average occupancy to 90%, an effort that he said may not be complete until 2025 in earnest. But given the company’s current financial and operational health, Hollister said he believes it can happen.
“We’re going to have more stability in these operations,” Hollister said. “And with the demand and supply seesaw happening over the next couple of years, we feel very confident about the future of being able to ramp up occupancy and maintain better margins with better execution.”