Cushman & Wakefield’s Senior Housing Capital Markets Group, exclusively advising the Carlyle Group, has arranged the sale of Camellia at Deerwood, a 189-unit independent living, assisted living and memory care community located in the Town Center submarket of Jacksonville, FL. The community was stabilized at the time it was purchased by Chicago Pacific Founders. Grace Management will take over management of the community.
Camellia at Deerwood was built in 2010 as a 4-story all-independent living community in a largely undeveloped area southeast of Downtown Jacksonville. As the property struggled to lease up during the recession, it fell into foreclosure and was acquired by the Carlyle Group in 2011, who had an opportunistic business plan to convert approximately 40% of the units to assisted living and memory care with Leisure Care as third party manager. After tactfully executing on the AL/MC conversion, including splitting larger units into two, along with other common area renovations to the community, the property has become the premier full continuum senior housing community in its now vibrant submarket with 110 independent living units, 63 assisted living units and 16 memory care units. The community’s license offers the ability to further split large units and increase the bed count to meet increased demand. The wide range of amenities include a bistro, a library, a parlor and game room, an arts and crafts activity room, a multipurpose room with theatre, a salon, a fitness center, and an outdoor heated salt-water swimming pool with bocce and shuffle board courts.
The Cushman & Wakefield team involved in the transaction included Executive Managing Director Richard Swartz, Executive Director Jay Wagner, and Director Jim Dooley. In addition to the sale, Jay Wagner and Jim Dooley are arranging acquisition financing on behalf of the buyer that will be placed on the property post-closing.
“Camellia is a fantastic property offering residents a great lifestyle in the fastest growing section of Jacksonville. From an investor standpoint Camellia offered investors a stable property with significant upside through a number of easily achievable improvements,” said Wagner.
“The competition for this gem was fierce among the bidders but Chicago Pacific ultimately prevailed and delivered an extremely professional execution,” added Swartz.
About Chicago Pacific Founders
Chicago Pacific Founders is a strategic healthcare investment fund focused exclusively on healthcare services. CPF is headquartered in Chicago, IL with an additional location in San Francisco, CA. As of September 2017, CPF had over $112 million of healthcare assets under management, representing a portfolio of over 25 distinct investments. The firm is investing out of its first institutional fund (CPF Fund I), which closed with $325 million of total committed equity capital in March of 2016. CPF operates as a fund of funds and has allocated $100 million of its committed equity capital to senior living, and has separately raised an additional $115 million of third-party equity to arrive at $215 million of total equity committed to senior living. CPF is currently raising CPF Fund II and targeting a first close by the end of 2018.
About Cushman & Wakefield
Cushman & Wakefield is a leading global real estate services firm with 45,000 employees in more than 70 countries helping occupiers and investors optimize the value of their real estate. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $6 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.
