Joint venture partners Harrison Street Real Estate Capital and Pisula Development Company (the development arm of RRC Medical Real Estate LLC) are venturing into the transitional care/skilled nursing space with the acquisition of a brand-new facility in Conroe, Texas. Featuring 150 beds in two stories, the transitional care facility was developed in late 2016 by the seller, an in-state developer relatively new to senior care, on about three acres adjacent to the 342-bed Conroe Regional Hospital Campus.
We have historically known Harrison Street as a seniors housing investor, and Pisula Development has mostly focused on medical office buildings. But they have partnered with OnPointe Health, a large long-term care operator in Texas, and a group of local physicians to operate the facility. Woodforest National Bank provided an acquisition loan to fund the deal, although a price wasn’t disclosed.
Conroe, as part of the Houston MSA, has seen a huge amount of development in recent years, but rather in the assisted living/memory care sector. However, if demand matches the supply many developers in the area tout, which would include large numbers of high-income seniors that could afford much of what is being built now, then building transitional care facilities, which would attract those private pay and Medicare patients, makes complete sense. According to sales in Texas over the past five years, the average age of a purchased SNF is about 30 years old. So, developers may sense an opportunity.
