Having just purchased nine acres in St. Augustine, Florida at the end of last year, Baltimore, Maryland-based Capital Health Group (CHG), an affiliate of Capital Funding Group that purchases and operates seniors housing and care facilities, is poised to break ground early in the second quarter of 2015 on a 64-unit memory care community. Although the development cost was not disclosed, CHG is responsible for finding the debt (which will cover about 65% of the total development cost and come from an existing relationship) and will provide the bulk of the equity, with its partner, Fortress Ventures, providing a smaller percentage of equity. Capital Health will bring in its affiliated management company, Compass Pointe Healthcare System, to operate the community, which will cater to the higher end of the market. Construction should last about a year.
There is only one other memory care project in the St. Augustine area: a 120-unit assisted living/memory care community developed by a joint venture between Montgomery Land Company and Zerga Development and scheduled to open this summer. Meanwhile, Capital Health Group is developing a number of projects across the state of Florida with several equity partners, including another one with Fortress.