Omega Communities Joins Pegasus Senior Living Family Of Communities
DALLAS and BIRMINGHAM, AL–Pegasus Senior Living based in Dallas announced it had partnered with Omega Communities of Birmingham, to manage two new senior living communities under development in Lady Lake, FL (Living Waters) and McDonough, GA (Lake Vista at Eagle’s Landing). Each of these communities will house approximately 160 units of Independent Living, Assisted Living and Memory Care apartments. Last year Pegasus Senior Living acquired 36 new communities in 10 states through a RIDEA structured transaction with Welltower (NYSE: WELL).
Pegasus will also assume management responsibilities for The Fountains of Hope in Sarasota, FL, and The Springs at South Biscayne in North Port, FL in conjunction with Omega Communities. The Springs at South Biscayne is a 133-unit Assisted Living and Memory Care Community in southern Sarasota County. North Port has seen significant growth over the past several years and recently welcomed the Atlanta Braves new spring training facility in April of this year. The Fountains of Hope is a 106-unit Assisted Living and Memory Care community located at the center of the expansion of Lakewood Ranch and its new town center, Waterside in Sarasota.
Pegasus will begin management of The Fountains of Hope and The Springs at South Biscayne effective on or before July 1, 2019. Omega Communities expects to refinance the existing senior debt on these communities prior to or shortly after the official start of the Omega/Pegasus partnership.
Pegasus Senior Living (“Pegasus”) was formed in mid-2018 by industry veterans Steven Vick and Chris Hollister. Pegasus currently leases and manages 36 independent living, assisted living, and memory care communities with approximately 4,000 units across the country from Welltower in a RIDEA joint-venture structure.
As Pegasus Co-founder and President Hollister noted, “We are delighted to be working with the Omega team as they execute their unique model of church-affiliated senior living campuses. We have structured our management fees with substantial incentive compensation to align our interest with Omega and are planning on co-investing in their new developments. I have known the Omega team and all the Omega Communities for almost two years now. I have worked closely with Pat Trammell and Jimmy Taylor at Omega since before that time and understand the spirit of their mission. The quality of their communities is at the top of the industry, and we believe Pegasus can add value to their ongoing operations and growth.”
The principals of Pegasus and Omega have been working together through formal consulting arrangements between Omega Communities and Hollister and Chris Rio since 2017. Rio spent 2018 as the President and COO of Omega Communities and currently serves as Chief Administrative Officer for Pegasus. Omega Communities’ head of operations, Stacy Binder, and Rio have also worked together previously during their time at Senior Living Communities and will continue to do so under the new partnership. In addition, both Hollister and Rio will serve on the Board of Advisors for Omega Communities and will continue to provide direct guidance and support to Omega Communities and its operating team and associates.
Vick, CEO of Pegasus, added “With the familiarity that both Chris Hollister and Chris Rio have with Omega and the quality of both their communities and their team, this was a logical fit for us, and we are pleased to partner with Omega moving forward.”
Trammell, Chairman and CEO of Omega, thanked the Pegasus team for their faith in having Omega as its partner, saying, “We have known Chris Hollister for several years and are humbled by the opportunity to work with Pegasus. This is a testament to our team’s efforts over the last five years, actually working to build superior quality communities while providing above market levels of care for our residents in a faith-based environment. We are honored to join forces with Pegasus, further enhancing our residents’ experiences, and we look forward to growing our portfolio together.”
Taylor, Chief Investment Officer at Omega, indicated the new relationship would offer a much broader range of financial opportunities for Omega. “First of all, we are extremely excited about the new direction Pegasus provides. The extensive quality relationships that Steven Vick and Chris Hollister have developed over the past twenty years understand the strength that Pegasus adds to Omega,” said Taylor. “This partnership will give Omega greater access to more financial resources that can strengthen our bottom line through reduced borrowing costs and additional sources of funding for working capital and the future growth of our portfolio.”
Omega Communities is a faith-based senior living owner, developer and operator of high-end senior housing communities in Florida, Alabama, and Georgia. Omega has four communities open and operating in Fort Myers, Florida, North Port, Florida, Birmingham, Alabama and Sarasota, Florida. The communities in Birmingham and Fort Myers are joint venture relationships with HJ Sims, a leading senior living owner and investment bank. The Living Waters community in Lady Lake, FL, broke ground earlier this year and is currently under development. The Lake Vista at Eagle’s Landing Community in McDonough, GA, is in final design phase and is scheduled to break ground in the fourth quarter of this year.