Senior living operator Next Level Senior Living sees opportunities to grow its portfolio of managed communities in 2025, according to CEO Michael Manuel.

Based in Chicago and founded in 2022, Next Level operates a portfolio of 11 properties in Minnesota spanning over 500 units, with plans to expand to additional states in the near-term, Manuel told Senior Housing News. The company has taken its average occupancy rate from 63% to 88% as of this year, providing stable ground for future growth.

“We’ve spent the last two years really developing who we are and what our identity is,” Manuel said.

Manuel said the company would continue to seek out new management partnerships with ownership groups. He noted the company is open to new partnerships including joint ventures or triple-net leases in which Next Level retains partial ownership in communities it operates.

“The management is the low-hanging fruit, but we’ve seen that even when we have a small ownership stake, it’s better to have some skin in the game,” Manuel said.

This comes as the company’s existing portfolio was recently purchased by an undisclosed private buyer. He added that the company is pivoting to find new capital partners and new communities to manage.

“We’re probably going to be closer to 20 properties by the end of the year,” Manuel added. “We’re going to remain in these properties in the short-term and medium-term while adding other properties and helping this ownership group transition to their in-house management.”

Since 2023, Manuel said Next Level has been “hyper-focused” on standing up and strengthening its operating model to be ready to pair with future capital partners.

“We feel like in the last two years, we’ve really got the secret sauce right in operations and we’re looking for new capital opportunities,” Manuel said.

Manuel said the company is targeting Minnesota as a prime market for expansion in the next three to five years alongside Illinois, Iowa and Wisconsin.

Manuel said Next Level’s progress has come through high-touch relationships with prospects, families and current residents with emphasis on local marketing tactics to garner interest.

The company’s existing portfolio is a mix of both rural and urban-based communities, with properties ranging between 20 units and 95 units. The company’s sweet spot is within assisted living and memory care, Manuel said, given the company’s skilled nursing background in high-acuity care.

“When we talk about assisted living, it’s almost like we’ve come from the future, so to speak, because the assisted living world is what the skilled nursing world used to be and we’re able to bring that acuity experience to the table,” Manuel said.

This comes as senior living operators have grappled with rising resident acuity and changing dynamics within assisted living operations. This year, Next Level is on the hunt to build out its information and technology (IT) platform and find ways to bring in new systems to improve care delivery, Manuel said.

“Technology is great, but if they won’t use it, or they won’t adopt it, you’re dead in the water,” Manuel said.

This drive to bring new tech systems also pairs with the company’s push to improve retention of frontline staff, with Manuel noting that turnover in rural markets “is a killer,” if not addressed. To find candidates, Next Level markets open positions within its markets in an effort to bring in local talent, while also carefully selecting its executive directors.

“We have to find a way to do things like the Hamburger University by McDonald’s,” Manuel said, in reference to finding and training new leaders.

Crucial positions in smaller markets continue to be the executive directors, registered nurses and licensed practical nurses in order to stabilize a community.

Looking ahead, Manuel sees opportunity on the horizon, both for Next Level and the industry as a whole.

“This is where the opportunity lies over the next few years for aggressive individuals that want to capitalize on the demand,” Manuel said.