Priority Life Care Lands $275M To Fuel Senior Housing Expansion

Priority Life Care has secured up to $275 million in strategic capital from Almanac Realty to support an expansion of its senior housing platform across the United States.

The commitment is expected to fund future acquisitions, new development and investments in Priority Life Care’s operating platform as the family-owned senior living provider looks to accelerate growth in assisted living and memory care.

Jones Lang LaSalle Securities advised Priority Life Care on the transaction, working alongside JLL’s National Seniors Housing Capital Markets team.

The partnership comes as Priority Life Care and Almanac are already moving together on acquisitions.

One day before the $275 million commitment was announced, a joint venture between the two companies acquired a seven-property senior housing portfolio in Pennsylvania from ValStone Partners. The portfolio includes 479 assisted living and memory care units. JLL arranged both the sale and a five-year acquisition loan from a regional lender.

That acquisition offers an early indication of how the new capital relationship could translate into additional real estate activity.

Almanac Realty, the private real estate platform of Neuberger, specializes in providing growth capital to real estate operating companies. The firm said it has committed more than $9.8 billion to 60 private and public real estate companies across North America.

For Priority Life Care, the partnership provides capital that can be deployed not only into individual senior housing properties but also into development and the operating infrastructure needed to support a larger portfolio.

The structure is notable at a time when senior housing operators are seeking ways to expand while navigating elevated construction costs, higher financing costs and competition for stabilized properties.

Rather than raising capital one acquisition at a time, a sizable platform-level commitment can allow an operator to pursue multiple opportunities as they arise and potentially move more quickly when assets become available.

The timing also reflects improving investor interest in senior housing as occupancy and operating performance have strengthened across the sector and demographic demand continues to build.

For healthcare real estate investors, the Priority Life Care partnership is another sign that capital is increasingly targeting operating platforms rather than simply individual properties.

With up to $275 million available for acquisitions, development and operating-platform investments — and a seven-property acquisition already completed with Almanac — Priority Life Care appears positioned to become a more active participant in the national senior housing market.

Source: JLL