JLL completes recapitalization of $725M seniors housing portfolio

BOSTON, Nov. 4, 2024 –  JLL’s Seniors Housing Capital Markets and M&A teams announced today that they have arranged the recapitalization of a $725 million, 20-asset seniors housing portfolio spanning the Sunbelt, Northeast and Midwest markets.

Working on behalf of Chicago Pacific Founders, JLL facilitated the sale of the portfolio to Ventas (NYSE: VTR) in an all-cash transaction. The properties were previously owned in CPF Living Fund I. Grace Management will continue to manage all 20 communities.

The portfolio composition is over two-thirds independent living, and the balance comprises assisted living and memory care units. The portfolio has undergone approximately $49 million in improvements and boasts an average renovated vintage of 2020. Properties are located in Alabama, Arizona, Florida, Illinois, Kansas, Maine, Michigan, Nevada, New York, Ohio, Oklahoma, South Carolina, Tennessee and Texas.

JLL’s Seniors Housing Capital Markets team representing the seller was led by Senior Managing Directors Jay Wagner and Rick Swartz, Director Jim Dooley and Analyst Sean Kirk. 

Representing the seller from JLL’s M&A team, Jones Lang LaSalle Securities, LLC, an affiliate of Jones Lang LaSalle Americas, Inc., was Senior Managing Director Ted Flagg.

“As one of the largest seniors housing transactions closed year-to-date, it is a meaningful indicator that appetite for scaled seniors housing portfolios is back,” said Wagner. “The significant supply-demand imbalance, precipitated by tepid recent development levels, is setting up the markets for an incredible run on occupancy and margin growth over the medium-term.”

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

For more news, videos and research resources, please visit JLL’s newsroom.

Chicago Pacific Founders ("CPF") is an operator-led investment firm specializing in senior living, medical office real estate, healthcare services, and healthcare technologies. Within CPF’s real estate strategy, CPF’s vertically integrated senior housing platform and medical office investment strategy capitalize on the firm’s expertise in both healthcare and real estate with the goal of creating value for investors while meeting the needs of an aging population. Based in Chicago and San Francisco, CPF is a strategic private equity firm focused on investing in growth companies within value-based care, healthcare services, and AI and tech enabled services. CPF's leadership team consists of former healthcare founders and experienced healthcare executives experienced in scaling businesses and improving operations. For more information, please visit www.cpfounders.com.

Ventas, Inc. (NYSE: VTR) (the “Company”) is a leading S&P 500 real estate investment trust enabling exceptional environments that benefit a large and growing aging population. With approximately 1,350 properties in North America and the United Kingdom, Ventas occupies an essential role in the longevity economy. The Company’s growth is fueled by its approximately 800 senior housing communities, which provide valuable services to residents and enable them to thrive in supported environments. The Ventas portfolio also includes outpatient medical buildings, research centers and healthcare facilities. The Company aims to deliver outsized performance by leveraging its unmatched operational expertise, data-driven insights from its Ventas OI^TM platform, extensive relationships and strong financial position. Ventas’s seasoned team of talented professionals shares a commitment to excellence, integrity and a common purpose of helping people live longer, healthier, happier lives.