Primrose Retirement Communities is adjusting its growth strategy amidst challenging development conditions, now focusing on expanding in smaller, mid-level markets. The recent acquisition of The Addison of Pleasant Prairie on Feb. 1 brings Primrose’s total communities to 34 in 17 states. Founded in 1989, the company offers independent living, assisted living, and memory care services.
Following a slowdown in growth due to the Covid pandemic, Primrose seized the opportunity to acquire The Addison of Pleasant Prairie in Kenosha, Wisconsin. CEO Jim Thares expressed optimism in the potential success of the new community, citing its compatibility with Primrose’s operational model.
Primrose typically grows through development, with each community operating as a separate LLC. While most of their properties are developed, the company has acquired only a handful. Thares explained their investor pool and private-placement offerings as key to funding their growth.
Despite pausing new developments, Primrose focuses on acquiring communities in markets with populations between 50,000 and 150,000 and access to medical facilities. The company is also experiencing a reduction in the use of staffing agencies and a steady occupancy recovery.
Thares remains positive about Primrose’s future, emphasizing their strengths in the industry and the opportunities ahead. By staying focused on their core competencies, Primrose is poised for continued success in their target markets.
