Actual property growth agency the Leo Brown Group not too long ago launched a $50 million fairness fund to develop new senior dwelling initiatives in a number of states, previous extra regular progress this 12 months.
So far, the Indiana-based actual property developer has constructed 3,900 senior dwelling models with lots of extra models nonetheless underneath building. The corporate’s administration platform, Traditions Administration, operates and oversees each day life throughout a portfolio of 24 senior dwelling properties.
This 12 months marks the corporate’s twentieth anniversary, and Leo Brown Group President Mike Wagner mentioned the corporate is concentrated on rising its senior dwelling portfolio. The corporate additionally has a vertically built-in contracting firm, Grand Contracting, that handles building of latest communities.
“We deliver a singular set of abilities that we will develop, we will construct and we will handle what we’ve constructed,” Wagner mentioned. “We’re capable of ratchet down what issues should be constructed and we’re nonetheless making issues pencil out even in these difficult occasions.”
In 2026, the Leo Brown Group has 600 models underneath building spanning a number of initiatives in Indiana, Florida and Ohio. The corporate is ready to open a growth in Winter Backyard, Florida,and it is also growing regional density with initiatives in Noblesville and Fort Wayne, Indiana, together with a undertaking in Springfield, Ohio.
To safe capital, Leo Brown Group makes use of native and regional lenders to safe debt financing and lift fairness via buyers spanning household places of work or different non-public sources of capital. Sometimes, the corporate will stabilize properties, promote them to institutional buyers after which stay on as supervisor, Wagner mentioned.
The corporate’s candy spot lies with impartial dwelling, assisted dwelling and reminiscence care initiatives carrying 100 to 150 models and above.
The $50 million fairness fund increase will gas the corporate’s subsequent “three to 5” growth initiatives with websites already recognized in Illinois, Indiana, Michigan, Pennsylvania and Tennessee, Wagner mentioned, together with a deliberate undertaking in Gallatin, Tennessee.
At this time, the corporate goals to draw youthful older adults, designing communities with facilities which have a various unit combine spanning a number of layouts and codecs together with conventional congregate dwelling and likewise together with cottages, Wagner mentioned.
Bigger models and “having a number of selections” for residents are two essential components for making new growth work in a difficult time to construct, Wagner mentioned. Future initiatives funded by the continuing fairness increase are connected to bigger mixed-use initiatives to herald retail, eating places and intergenerational connections for residents.
For instance, the undertaking at present deliberate in Grand Rapids, Michigan will embody retail storefront house with room for a espresso store and cafe straight related to the group.
“We’re designing these to be Class A properties which have a ‘wow’ issue to them that may be locations,” Wagner mentioned.
The Leo Brown Group has a long-standing relationship with well being care actual property funding belief Sabra Well being Care REIT (NASDAQ: SBRA) stemming from a previous growth pipeline settlement with the Tustin, California-based REIT. The corporate not too long ago partnered with Ventas (NYSE: VTR).
This might result in further institutional owner-operator alternatives sooner or later, whereas bringing further growth alternatives ahead, Wagner mentioned.
“We’re simply making an attempt to scratch the floor in just a few markets the place we see alternatives to introduce a brand new product,” Wagner mentioned. “I see no cause why we will’t proceed our tempo of at the very least two begins a 12 months.”
