The competition for middle-market senior housing in the Southeast continues to heat up, with a growing operator adding a new brand to its strategy, through a partnership with a capital firm making its entry into senior living.
Knoxville, Tennessee-based Solinity announced the formation of Enrich Senior Living, a joint venture with Chicago-based 29th Street Capital, Solinity CEO Josh Crisp told Senior Housing News.
The venture’s first acquisition is a 24-bed personal care home in Norcross, Georgia, a suburb of Atlanta. The property, a family-owned facility, has been rebranded as Enrich @ 519 and is currently undergoing a full remodeling, inside and out.
Solinity, which announced a partnership in May with Duluth, Georgia-based Paran Homes to develop middle-market senior housing throughout the Southeast, owns and operates seven communities in Florida, Georgia and Tennessee. Solinity was founded in 2017.
Building scale through acquisitions
Enrich @ 519 is an example of the types of deals the Solinity-29th Street Capital venture plan to target: single building, value-add properties that cannot build economies of scale in today’s market, but offer significant upside through renovations, operational efficiencies and, later, development of infill properties.
Enrich will focus on the Atlanta market initially, before branching out to other primary and secondary markets across the region, Crisp told SHN.
“We’re looking to acquire up to 1,000 units over the next two years,” he added.
“It’s hard to find the right opportunities that are true value-add plays,” Crisp said.
But Solinity brings operational experience to potential deals, coupled with the patient capital 29th Street has raised for its entry to the space, allowing Enrich to do due diligence on both on- and off-market deals.
Enrich @ 519 had just hit the market when the venture began testing the waters, Crisp told SHN. What ultimately convinced the former owners to sell was Solinity’s experience in the space.
“They wanted to ensure a new buyer would treat the community and its residents as they did,” Crisp said.
Solinity is open to the possibility of enlisting Paran Homes for development opportunities for the Enrich brand, once scale has been achieved. Solinity and 29th Street are interested in acquiring adjacent parcels to its communities, in order to build a full continuum of care across the senior living spectrum, Crisp indicated.
“Solinity is a creative platform,” he said. “Although Enrich is interested only in acquisitions now, there could be opportunities down the line for collaboration between us, 29th Street and Paran Homes.”
The post Solinity Expands Middle-Market Efforts with New Enrich Senior Living Brand appeared first on Senior Housing News.