Chelsea Senior Living Shifts Growth Strategy from Development to Third-Party Management
Chelsea Senior Living is adapting its growth strategy to focus on third-party management contracts, a move driven by current market conditions and changing industry dynamics.
CEO and Founder Herb Heflich and President and COO Roger Bernier explained in a recent interview that the company has chosen to pursue third-party management opportunities due to elevated interest rates and construction costs for new development projects.
The shift in strategy comes as a response to the challenges of development in the current market. Chelsea’s current portfolio includes several ground-up developments, but the company is now aiming to optimize its portfolio and stay nimble for the future by focusing on third-party management opportunities.
With this transition, Chelsea Senior Living is capitalizing on its reputation as a top-quality operator, attracting new partnerships and management opportunities. The company is also partnering with various ownership companies, including Capitol Seniors Housing, Welltower, and PGIM Real Estate, to expand its third-party management foothold.
In addition to strategic partnerships, Chelsea Senior Living is also leveraging technology to streamline operations and improve resident care. Furthermore, the company is focusing on developing smaller, more intimate assisted living communities that cater to the specific needs of its residents.
Looking ahead, Chelsea Senior Living aims to become a “modest-sized, regional company” with a focus on nimbleness and flexibility to succeed in a rapidly evolving industry.
