June 30, 2017, Steve Monroe, Senior Care Investor - Just eight years ago, Curt Schaller and Paul Froning formed Focus Healthcare Partners LLC to parlay their investment and financing expertise into an investment platform to buy senior living properties across the country in partnership with private equity capital sources.
Since then, they have purchased 16 properties for more than $400 million, and have sold eight of them at what we believe to be a tidy profit. Several months ago, they decided it was time to form their own fund and went into the market seeking about $200 million. Apparently, they underestimated themselves and their track record.
Focus recently closed on a $312 million discretionary real estate fund that will focus on the private pay senior living market, including senior apartments, independent living, assisted living and memory care communities, but not skilled nursing facilities or entrance-fee CCRCs. To demonstrate what they accomplished, only 20 U.S.-focused first-time real estate funds, including all types of real estate, actually made it to the closing table in 2016, with an average size of just $71 million.
So this new fund of theirs is more than four times that average. And when it is leveraged, they will be able to purchase up to $900 million of senior living assets, and they will have sole discretion over the investment decisions. Congrats on a successful capital raise, now let the investing begin. More details to follow in the July SeniorCare Investor.