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Lifespace to Acquire 3 Texas Communities, Advancing Growth Strategy

Lifespace Communities plans to buy three senior living communities in Texas, furthering a growth strategy laid out by President and CEO Jesse Jantzen last year.

The senior living nonprofit on Wednesday announced it has finalized an agreement with a private equity investment group to acquire three communities operated by ER Senior Management: Meadow Lake, a CCRC in Tyler; Wesley Court, a community in Abilene; and The Craig, a community in Amarillo, Texas.

Lifespace did not disclose financial terms of the deal or the name of the private equity group.

With the acquisition, West Des Moines, Iowa-based Lifespace is adding 689 new residences and increasing its total portfolio count to 17. The operator plans to take management of the properties by the end of the year, with ED Senior Management operating them until then.

All of the communities are joining Lifespace with a variety of unit types, including independent living, assisted living and cottage-style residences. The communities carry “strong” occupancy levels, and offer a combination of Type C entrance fee and rental contracts for residents.

For Lifespace, the acquisition also represents an opportunity to expand its service offerings and diversify its revenue base.

“The addition of these communities advances our ongoing strategic objective to engage in the rigorous and disciplined pursuit of growth opportunities to scale and diversify our core business,” Jantzen said in a press release on the acquisition.

Diversification and growth has been a long-term effort for Jantzen, who said in 2021 that one of his big goals for the future was to add to the operator’s service lines and improve occupancy across the organization’s portfolio.

“We have some work actively underway at growing our [portfolio],” he told Senior Housing News last year.

Some of Lifespace’s communities have run into fierce operational challenges in recent years. Among the organization’s sore spots is Edgemere, a Lifespace community that declared Chapter 11 bankruptcy in April after running into occupancy challenges during the pandemic.

In addition to filing for Chapter 11 bankruptcy, the community also sued its landlord Intercity Investments Inc. and its agent, private equity firm Kong Capital.

“Like previous challenges we have overcome, we will tackle these issues head-on and remain committed to identifying a long-term financial solution,” Jantzen said in a press release about the bankruptcy and lawsuit.

Another Lifespace CCRC, The Stayton at Museum Way in Fort Worth, declared Chapter 11 bankruptcy in 2019 after defaulting on liabilities related to bonds. That community joined the Lifespace portfolio after the organization affiliated with Senior Quality Lifestyles.

The post Lifespace to Acquire 3 Texas Communities, Advancing Growth Strategy appeared first on Senior Housing News.

Source: For the full article please visit Senior Housing News

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