Green Courte Partners Acquires Three Active-Adult Communities

Green Courte Partners acquired the communities Chateaux at Mon Abri, Laurel Springs, and Grace Pointe Living⁠—three active-adult senior cottage communities located in the Oklahoma City metropolitan statistical area. 

The portfolio contains 315 cottages and a 35-unit age-restricted apartment building. 

The acquisition, which was made through its fifth investment fund, Green Courte Real Estate Partners V, LLC and its affiliates, increases GCP’s national age-restricted housing portfolio, which is managed by the firm’s wholly owned operating platform, True Connection Communities, to 17 communities containing approximately 2,600 units. 

“We are increasingly attracted to this transitional subset of the active-adult/senior housing sector based on our positive experience operating the cottage component of our existing portfolio, which is continually almost 100% occupied,” Matt Pyzyk, managing director of Acquisitions at GCP, said in prepared remarks. 

“Age-restricted cottages are a unique type of rental housing that is designed for and targeted to seniors seeking a single-family environment without the burden of home maintenance and who don’t yet desire the all-inclusive services like meals or housekeeping that come with independent living communities.”

The cottages feature private entries, private patios, and individual garages or carports, and the company plans to improve the common areas and amenities at all three communities to expand their market appeal. 

“This style of rental housing is perfect for active seniors seeking to maintain a socially rich, independent lifestyle,” Jim Pusateri, Chief Executive Officer of TCC and a Managing Director at GCP, added.

Part of a Recovering Sector

This transaction illustrates the recovery underway in the senior living sector. 

“The senior housing industry was hit hard during the early stages of the pandemic given its position as the epicenter of many COVID infections and deaths. This caused many transactions in this area to be delayed or terminated,” Louis Monti, partner, Sullivan & Worcester, tells GlobeSt.com. 

“However, as the owners and operators of these communities became more adept at dealing with COVID infections, the industry rebounded nicely with many of the same transactions that were delayed or terminated coming back to life and closing.

“It remains to be seen what impact, if any, President Biden’s recent promise for further regulations in the nursing home space will have on the continuing rebound of the industry.”

Driving these deals is a robust deployment of equity and debt capital in the sector, says Michael Lincoln, principal of Larkspur, Calif.-based GreenRock Capital. “As a direct provider of C-PACE into the seniors housing industry, owners and developers continue to look for diverse, flexible and cost-effective capital to support their investment strategies,” he tells GlobeSt.com. 

“Among the most common segments are the active-adult and independent living sector as we saw recently with Disney’s announcement about their Storyliving project in California targeting the 55+ population. 

“Additionally, we continue to see investment from exiting owners and operators on the acquisition side as they look to build size and scale to cope with rising operational costs especially, labor.”

Each Seniors Sector ‘Should Thrive’

Peter L. Curry, partner at Farrell Fritz, P.C., tells GlobeSt.com that there are several types of senior housing throughout the United States that are analogous to the age-restricted cottage concept and that each “active seniors” concept should thrive in the coming years.

“Single-family ownership is hard work and expensive, and seniors have a variety of other interests, i.e., children and grandchildren, travel, and socializing, which are more important. Having someone else absorb those maintenance burdens is tantalizing.

“However, this asset class is not immune to financial challenges similar to those of home ownership. Increased real estate taxes, energy and insurance cost hikes, and the costs of maintenance of aging units, will all be passed on to the seniors.

“It is often easier to control expenses in your own home than in a shared community. Those seniors considering this lifestyle change should consider inflationary and/or special cost increases when budgeting for the transition.”