Virtus Real Estate Capital (“Virtus”), a leading asset manager of alternative real estate property types, announced a 117 bed Senior Living development project in La Grange, Illinois.
AUSTIN, Texas – Virtus Real Estate Capital (“Virtus”), a leading asset manager of alternative real estate property types, announced a 117 bed Senior Living development project in La Grange, Illinois. The deal is a joint venture with Pathway to Living, a high-quality Chicago-based senior living operator and developer with intimate local market knowledge and decades of operating experience in the region.
Located in an upper-middle-class suburb thirteen miles southwest of Chicago, LaGrange will be a purpose-built, state‐of‐the‐art community containing a mix of Assisted Living (“AL”) and Memory Care (“MC”) beds in addition to a number of amenities, such as a community garden, multi‐venue dining, ample wellness spaces throughout, and a resident concierge. The La Grange project marks an on-going commitment to the Virtus strategy of targeting cycle-resilient property categories.
“The demand drivers and fundamentals of the category make Senior Living an obvious area of focus for us, but that doesn’t make it an easy space for passive investment,” said Terrell Gates, Virtus Founder and CEO. “You have to be very careful about picking your spots in the space. This development proved to be the right fit for us because our Senior Living Team, who has decades of investment expertise, has done an incredible job finding the right markets with compelling demand drivers yet barriers to new supply that meet the criteria of the Virtus investment strategy.”
Despite a flood of new supply and moderate performance in the last year, Senior Living represents a core property type for Virtus due in part to the coming wave of demographic growth driven by the aging Baby Boomer population. The Boomers have only recently begun to enter their retirement years in great numbers, and as they continue to age the demand for such caregiving communities will only grow, particularly in high barrier‐to‐entry markets with dated competitors and strong pent-up demand, such as the one LaGrange represents. Not only will LaGrange be the newest property in the market, the 30+ years of operational excellence provided by Pathway – whom Virtus has previously partnered with on other Chicago area projects – allows LaGrange to offer numerous competitive advantages in an already tight sub-market.
“The Pathway relationship has been mutually beneficial and we look forward to expanding our successful partnership further with another quality investment scheduled to close this fall,” said John Sweeny, Virtus Managing Director, Senior Living. “Pathway has done a tremendous job continuing to invest and innovate on its competitive advantages of culture and tailored wellness programs, which allows them to provide the best experiences and care for our valued senior residents.”
About Virtus
Virtus Real Estate Capital, founded in 2003, brings thoughtful stewardship to the practice of real estate investment, delivering non-correlated alpha via cycle-resilient real estate. Over the last 15 years, Virtus has acquired 218 properties for a combined acquisition value of over $3.4 billion and has fully realized 153 property investments. With a strong and established track record, Virtus has proven to be successful in all phases of the market cycle. For more information, please visit www.virtusre.com.
Contacts
Mrs. Brooke Akins
bakins@virtusre.com
Disclaimer
This communication is not an offer of any security nor the solicitation of an offer to purchase any security.
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