There are several common refrains about seniors housing:
- New players are constantly entering the sector, enticed by seniors housing’s high return on investment and resistance to recessionary forces.
- Those new players must partner with an experienced operator in order to succeed in this complicated field.
- Medium-sized, regional operators are the most likely to succeed as they have scale that outshines mom-and-pop shops, but have tighter quality control compared with the behemoths of the industry.
That type of partnership is what Biloxi-based commercial real estate developer LifeCare Properties sought when it decided to work with Jackson, Mississippi-based operator Blake Management Group (BMG).
Blake is a regional seniors housing operator founded in 2007 with around 20 locations throughout the Southeast. The executives of LifeCare and its predecessor companies have been developing retail and hospitality projects for 50 years.
The two companies announced last year that they were forming a $225 million joint venture to develop 10 new seniors housing properties totaling about 1,000 beds over five years. The goal is to leverage LifeCare’s deep development experience with Blake’s operational success to push each other to new heights.
The first two projects in the venture — in Waco and New Braunfels, Texas — are currently under construction with an expected delivery in late 2020.
Seniors Housing Business spoke with Blake’s CEO Jeremy Cole and LifeCare’s founder and managing member Brooks Holstein to discuss the venture’s goals, and what their plans mean for the seniors housing industry as a whole.