Real estate investor and service provider Foundry Commercial has acquired from HHHunt Spring Arbor Senior Living and its 24 assisted living and memory care communities in the mid-Atlantic.
The move nearly doubles Foundry’s senior living portfolio, which before the announcement stood at 22 communities. Capital Funding arranged financing for the transaction. Foundry declined to disclose the portfolio’s purchase price.
The Spring Arbor portfolio spans 1,424 units in Maryland, North Carolina, and Virginia. Seller HHHunt in 2019 expanded the portfolio, which was then its senior living platform, with a $128.4 million investment.
Current Spring Arbor President Greg Fox will continue to lead operations for the newly acquired senior living platform and its roughly 1,500 employees.
Foundry Commercial CEO Paul Ellis said the company was looking for “organizations with a similar culture fit” when the Spring Arbor opportunity arose.
“It was clear from the start that the Spring Arbor Senior Living team shares our passion for treating others the way we want to be treated, and takes great pride in what they do, providing exemplary care to the residents in each of the Spring Arbor communities,” Ellis said in a press release about the acquisition.
Foundry counts Morgan Stanley Real Estate as an investment partner, and Foundry President of Healthcare Services Kevin Maddron said the deal was meant in part to more closely align the two companies on the portfolio’s ownership and operation.
“As an investor with experience in this segment, we can help grow the platform, specifically through capital improvements,” Maddron told Senior Housing News.
The Spring Arbor transaction represents Foundry’s first opportunity to acquire and own all of an operating platform — but the company is not new to the sector, either. Foundry launched its healthcare and senior housing management platform in 2019 to acquire, develop and manage seniors housing communities across the country, with partners including Foster Senior Living and Cascadia Senior Living.