A new investment entrant in the senior housing sector has acquired two communities with further plans to notch around $500 million in investments and acquisitions within the next year.
The company, SlateView Capital, is the latest venture from Kendall Young and Azhar Jameeli, who worked together at Healthpeak Properties (NYSE: DOC). Young also served as CEO of NorthStar Healthcare, and Jameeli built the senior housing investment platform at IRA Capital.
The two held initial discussions about forming SlateView back in 2019 when the industry was oversupplied, but the COVID pandemic drastically slowed new supply coming to market. They decided now was the time to launch due to the level of demand coming into the industry, boosting occupancies and revealing deals that can be purchased below replacement cost, Young said.
Since launching the firm in August, the company’s leaders have completed two acquisitions in southern California, Parkview Estates in Fountain Valley and Meadowbrook at Agoura Hills. Discovery Senior Living and Integral Senior Living were brought on as the communities’ managing operators. SlateView is investing an additional between $8 million and $10 million in renovations post-acquisition.
The company’s leaders are eyeing a deal pipeline with a $500 million target.
“Given the market opportunity and where we were in terms of our respective careers, it made a lot of sense to come together,” Jameeli told Senior Housing News.
SlateView’s leaders are seeking a growth trajectory in markets on the West Coast in California, Washington, Oregon and in certain parts of Arizona; and the East Coast.
The company’s leaders are targeting high-barrier-to-entry markets with favorable demographic tailwinds. They are seeking well-performing new and vintage communities with at least 120 units and assets with potential to scale or multiple-community platforms that enhance the company’s value. The opportunity set includes communities that need renovations or repositioning.
The company’s leaders are seeking to partner with senior living operators and pair them with data analytics and other tools that enhance performance-based alignment, transparent governance and accountability.
“The business plan calls for a certain competency, and so whoever the operator is in those specific markets will have the right competency in place to achieve our business plan,” Jameeli said.
Jameeli added that while the firm is new, the history of senior living investment between himself and Young will help SlateView remain for “a very long time.”
“We always like to deliver out-performance for our investors,” Jameeli said. “The first couple [of communities] are value add. The next couple don’t need to be … We have capital available across spectrum that we can do very efficiently.”
Companies featured in this article:
Discovery Senior Living, Integral Senior Living, SlateView Capital
