Inspirit Senior Living just doubled its portfolio (to four properties), expanded its joint venture partnership with Care Investment Trust and grew its geographic reach with the acquisition of two personal care communities in Pennsylvania. Since being founded in 2015 by Greenfield Senior Living veteran David McHarg, Inspirit has taken a slow and steady approach to its growth, acquiring its first property in November 2016 (a 75-unit assisted living community in Winchester, Virginia for $9.38 million, or $125,070 per unit) and its second in February 2017 (a 120-unit AL/memory care community in Bartlett, Tennessee for $10 million, or $83,330 per unit). The two communities were considered somewhat “value-add,” and Inspirit has since improved operations at both. Care Investment Trust holds the majority stake in the JV and will also for the two newest properties.
Located in Macungie and Palmerton (Allentown MSA), the communities were built between 2002 and 2003 with a total of 111 units. One community is 100% personal care while the other features a small (15% of the total) memory care portion. Occupancy was already strong (at 90%) at the time of closing, but Inspirit will look to improve upon it and increase cash flow. The JV also plans to implement an $850,000 renovation to refurbish the communities. A partnership between LifeCare Holdings and The Weston Group sold the communities for $13 million, or $117,100 per unit. Going forward, Inspirit looks to steadily grow its portfolio, by acquisition or development, primarily in the mid-Atlantic region.
