Focus Fund Seeks to Make $900 Million in Senior Housing Investments

The fund seeks to add value by making property improvements and improving residential experiences.

Chicago-based Focus Healthcare Partners has closed a $312 million private investment fund that is seeking to make discretionary investments in the senior housing sector. With the use of additional institutional debt, the fund expects to invest about $900 million in the sector.

The real estate investment firm reports that it is looking for investments in properties that offer independent living, assisted living, and memory care services on a private-pay basis, to senior citizens nationwide.

Founded in 2009 by Paul A. Froning and Curt P. Schaller, Focus has acquired senior housing properties nationwide. In partnership with institutional investors, the firm previously has invested more than $400 million in the senior housing sector.

Schaller noted, “Senior housing represents one of the most compelling sectors in the United States. With its clear and compelling demographic story and high levels of fragmentation, we see significant opportunities to acquire properties at attractive risk-adjusted returns.”

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The current Focus fund has attracted investments from public pension plans, university endowments, public insurance companies, and other institutional investors.

Froning said, “We are fortunate to have developed relationships with investors who share our vision for investing in senior housing. We have built our success by focusing first and foremost on how we can improve the resident experience.”

He added, “With aggressive asset management and physical improvement to the properties we acquire, we aim to maximize quality of life for seniors and increase the value our properties afford them.”

The National Investment Center for Seniors Housing & Care, an Annapolis, Maryland-based trade association, reports that occupancy rates in the independent living niche were 90.6% on average in the second quarter and 86.5% for the assisted living market.

Annual absorption in the seniors housing sector was at 3% as of the second quarter, which was the fastest pace since 2006, when the NIC started to report this information. And seniors housing annual inventory growth rate in the second quarter was at 3.9%, which was also its fastest pace since 2006.

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