ALPHARETTA, GA-Private equity firm Formation Capital, which specializes in the senior housing space, said Wednesday it has acquired 36 communities for approximately $400 million in partnership with investment house Safanad. The portfolio is spread across 13 states; a release from the company did not identify the seller or sellers, nor did it provide specifics on the locations. A Formation spokeswoman did not respond immediately to GlobeSt.com’s requests for additional information.
The portfolio comprises more than 2,600 units, 65% of which are in assisted living facilities, 18% in independent living and 16% in memory care. Formation says the communities will be managed by Senior Lifestyles Corp., Frontier Management and Prestige Senior Living, among others.
“This transaction demonstrates Formation Capital’s continued focus on expanding its real estate footprint in private pay seniors housing,” Formation CEO Brian Beckwith says in a release. “We believe this portfolio presented a rare opportunity to acquire high-quality real estate managed by best-in-class operating partners. We are excited to begin new strategic relationships with Senior Lifestyles Corp. and Prestige Senior Living and continue our strong relationship with Frontier Management.”
The deal marks Alpharetta, GA-based Formation’s third portfolio buy with Safanad. In the largest such joint venture to date, the two companies last September bought a portfolio of 68 skilled nursing facilities for $750 million. Since opening its doors in 1999, Formation has invested more than $5.5 billion in the senior housing sector.