Chicago Pacific Founders (“CPF”), a healthcare investment firm, today announced the sale of a senior housing portfolio consisting of 20 communities to Ventas, Inc. (NYSE: VTR). The 20 communities encompass over 2,900 senior housing units across 14 states. The transaction, which closed earlier this week, is valued at $725 million, representing one of the most significant senior housing portfolio sales in the United States for 2024.
CPF, recognizing one of the most significant demographic shifts with the aging Baby Boomer population and the need for high-quality housing and services, assembled this portfolio as part of its initial investment in the sector. Outside of this portfolio, CPF has now expanded its presence in senior housing to include multiple institutional quality portfolios. CPF continues to be an active investor in senior housing by purchasing and improving the operations of senior housing communities.
To provide a great resident experience and drive operational changes, CPF purchased and grew its own senior housing management company, Grace Management, Inc. (“Grace Management”), which is now one of the largest senior housing operators. Grace Management’s primary objective is to enhance the quality of living for its residents and the operations of its assets. Grace Management focuses on elevating the quality of life for residents by introducing engaging programs, enhancing dining services, offering comprehensive wellness and care options, and fostering a culture of care among its employees.
This portfolio encompasses a diverse mix of independent living, assisted living, and memory care communities located in strategic markets known for strong and growing demand for senior living. These communities feature a variety of amenities such as restaurant-style dining, fitness and wellness spaces, pools, spas, and theatres, offering residents premium care and lifestyle experiences.
"This landmark transaction underscores our commitment to creating value for our investors utilizing our senior housing management business, Grace Management, and providing high-quality living environments for seniors," said John Rijos, Co-Founding Operating Partner of CPF and CEO of CPF Living Communities. "Senior living is a core investment strategy and one we continue to grow by purchasing and establishing new institutional-quality communities, and this sale demonstrates the strength and attractiveness of this asset class," says Mary Tolan, Founder & Managing Partner at CPF.
Ventas is a publicly traded S&P 500 real estate investment trust and the second largest owner of senior housing in the U.S. Ventas, which has been an active investor in senior housing communities, will expand its senior housing operating portfolio through this acquisition. Recognizing the quality of the existing operations and strong historical performance, Ventas will continue to utilize Grace Management to manage the communities, expanding the established operating relationship between Ventas and Grace Management.
“We are excited to add these high-performing and well-managed communities to our senior housing operating portfolio," said Justin Hutchens, Executive Vice President, Senior Housing and Chief Investment Officer of Ventas. "This investment further advances our strategic objective to grow our senior housing footprint to meet increasing demand from a large and growing aging population seeking the proven health, well-being, and longevity benefits of senior housing. We are pleased to expand our established relationship with Grace Management, which has a proven track record of providing outstanding care and service delivery to residents and delivering strong results operating Ventas communities."
This transaction highlights the strength of the senior housing sector, which is anticipated to experience continued growth, driven in part by favorable demographic trends and an increase in demand for senior living services. The sector is well-positioned to benefit from historic growth in the aging population and evolving preferences for senior care, with demographic trends likely to support continued growth in the years ahead.
About Chicago Pacific Founders
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.
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