LOUISVILLE—A newly formed management company led by industry veteran Kai Hsiao has taken over operations of 76 Ventas-owned private pay seniors housing communities previously leased to Elmcroft Senior Living under a triple-net lease. The new entity, known as Eclipse Senior Living, will retain the Elmcroft brand and has hired most of the Elmcroft community and field-level personnel.
Ventas first announced this past October that a deal was in the works to establish a joint venture with an institutional partner on the assets leased to Elmcroft and to transition management of the portfolio to the Hsiao-led company. In connection with this transaction, Ventas has taken a 34% ownership stake in Eclipse, with the remaining 66% owned by Eclipse's management.
Between April 2013 and the end of 2015, Hsiao served as CEO of Holiday Retirement, and then moved onto HCP, where he served as senior managing director of seniors housing properties. He left HCP last spring to form the new management company, for which he's now CEO.
“With over 50 years of combined experience across seniors housing, this management team has a demonstrated track record of success and value creation,” Ventas CEO Debra Cafaro said on an earnings call this past October. She added that the new company would be “a valuable addition to our existing operator relationships.” For his part, Hsiao says, “We greatly value Ventas's partnership as we establish a leading seniors housing management platform caring for approximately 6,000 seniors and drive upside from the portfolio.”
The portfolio now managed by Eclipse includes geographically diverse seniors housing communities in markets with large and growing aging populations and favorable demographics compared to national averages. Eclipse is doing business as Elmcroft, both across the platform and at the individual property level.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
