Foundry Commercial and Foster Senior Living Form Seniors Housing Joint Venture
Posted on June 5, 2020
Orlando, Fla. (June 5, 2020) – Foundry Commercial, a full-service real estate services and investment firm, today announced the formation of a joint venture partnership with Foster Senior Living, LLC. Named FSL Senior Living Ventures, LLC, the entity will acquire, develop, and manage seniors housing assets across the United States. Foster Senior Living will manage all day-to-day operations of the jointly owned and managed communities, and Foundry will provide capital and transaction expertise for the new partnership. Founded more than 20 years ago, Missouri-headquartered Foster Senior Living has long been considered an industry leader in the development and operations of independent living, assisted living, and memory care communities in multiple states. As of the second quarter of 2020, Foster Senior Living manages 20 assets with over 1,100 employees in seven states.
The joint venture currently manages four assisted living, memory care and skilled nursing assets for a sophisticated institutional owner of seniors housing assets and expects to add a fifth asset in July 2020.
“We are at the very beginning of nearly three decades of Baby Boomers entering their senior years, and those demographic trends are favorable for the industry. Additionally, we expect to see re-alignment of assets to quality operators post-COVID-19 as some assets developed over the last few years have struggled to meet proforma expectations. Our partnership offers operational and capital solution for owners looking for a new strategy,” said Kevin Maddron, Healthcare Principal for Foundry Commercial. “At the precipice of this influx in demand, this joint venture allows us to partner with a best-in-class operator to develop, acquire, and manage for this wave of aging demographics.”
According to reports by the Center for Medicare and Medicaid Services, spending on healthcare services is expected to grow in excess of 5 percent annually over the next five years to reach over $6 trillion by 2027. Likewise, as Baby Boomers continue to age, the industry expects demand for seniors housing to increase from 25,000 units of production per year (2015-2020) to 92,000 units per year (2025 to 2030).
Success in seniors housing communities is largely dictated by the ability of the companies that manage them. In addition, finding the right economic and cultural alignment with a quality operator is critically important. Team members who have a passion and heart for serving seniors and the community drive success. The new joint venture brings this attribute to investment partners.
“Those that do well in this industry are the ones who are passionate about providing exceptional care to the residents in their communities, and who employ talent that shares in that passion,” added Maddron. “Foster Senior Living has set the bar high in this area, proving that their hospitality-driven approach to care resonates with seniors and those who care about them. We are thrilled at the opportunity to partner with them to identify, develop, and help provide capital for additional assets.”
“Over the course of nearly four decades in this industry, we have created a supportive care model that meets the needs of an aging population by putting compassion and exemplary care first,” stated Susan Foster, COO, Foster Senior Living. “We have grown communities from the ground up, starting with a vision and ending with communities that have flourished. We want to spread our standard of excellence across more communities and new markets. We are looking forward to this partnership with Foundry – a known leader in asset management and development – in order to bring our top-level care to more seniors throughout the U.S.,” stated John Foster, CEO, Foster Senior Living.
The joint venture becomes a part of Foundry Commercial’s Healthcare Services platform, which offers a combination of in-depth sector knowledge, long-standing relationships with premier health system providers, as well as a 350+ employee organization representing some of the most well-known names in real estate ownership. With decades of depth and experience in the healthcare / medical office building (MOB) space, moving into senior living facilities proved a logical next step. With offices currently in 11 locations throughout the country – with transactional experience in nearly all 50 states – Foundry’s Healthcare Services platform currently offers brokerage, property management, facilities management, project management, asset identification, and development / investment services. More information about Foundry Commercial’s healthcare portfolio can be viewed on our website or by contacting Kevin Maddron at Kevin.Maddron@foundrycommercial.com. More information about Foster Senior Living is available at fosterseniorliving.com.
About Foundry Commercial
Foundry Commercial is a full-service real estate services and investment company with over 350 employees and more than 58 million square feet of management and leasing across the Southeast and Texas. Since 2007, Foundry has provided leasing, brokerage, building management, corporate services, and project management services, and is the largest real estate service provider to religious and not-for-profit organizations in the country. Foundry also includes a development and investment platform that is fully integrated into its services business, leveraging its local market expertise to control more than one billion in advantaged investment opportunities with their JV partners. For more information, visit www.foundrycommercial.com.
About Foster Senior Living Communities
Foster Senior Living based in Springfield, MO. Foster Senior Living is a family owned and operated organization who has a hands-on approach with every aspect of each one of their communities. John and Susan Foster’s philosophy of a family-centered approach with staff and residents have gained them the reputation that has allowed them to flourish in senior living management for over fifty years. “It has been our passion, our dedication and our determination to treasure the elders in our lives that has guided us to where we stand today. What started out as a vision, over the years, has turned into much more than we could have ever imagined. While we have developed home-like communities, trained the quality leadership, and proactively nurtured our developed and managed communities, we foster nothing short of premium care. This is what we will provide, our family taking care of your family.” – Susan Foster, Chief Operation Officer of Foster Senior Living. For more information, visit www.foundrycommercial.com.