BWE, a leading commercial real estate capital markets advisory firm, today announced the successful arrangement of an approximately $240 million recapitalization of a multi-property, Class A seniors housing portfolio located across three major metropolitan markets in the Midwest. BWE served as exclusive capital markets advisor to O’Reilly Development Company, LLC, a Springfield, Missouri-based real estate developer and investor, in capitalizing the transaction.
The portfolio comprises purpose-built Independent Living, Assisted Living, and Memory Care communities developed, and asset managed by O’Reilly Development Company between 2019 and 2022. The assets are geographically diversified across three major Midwestern metropolitan statistical areas. The communities are fully stabilized, operating at occupancy levels ranging from 96% to 99%, with in-place NOI growing materially across trailing measurement periods. The portfolio contains additional embedded upside from mark-to-market rent renewals across the portfolio.
The portfolio is managed by Arrow Senior Living, a St. Charles, Missouri-based regional operator managing approximately 45 communities across eight Midwestern states. Arrow is co-invested alongside O’Reilly in the venture, fully aligning operator and ownership incentives across the investment. Arrow and O’Reilly have completed more than 16 communities together prior to this portfolio, representing one of the most established developer-operator partnerships in the Midwest seniors housing market. Arrow’s stabilized O’Reilly assets maintain an average occupancy of 96%.
“O’Reilly has built something exceptional here,” said Ryan Stoll, National Director of Seniors Housing Capital Markets at BWE. “Purpose-built, Class A communities, at a great basis, operating at near-full occupancy across three major Midwest markets — that’s a track record that speaks for itself. Our job was to make sure the capital markets outcome reflected the quality of this portfolio, and we’re proud of what the team delivered for O’Reilly and their residents.”
“What set BWE apart on this engagement was that they think like owners,” said Hunter Hein, President of O’Reilly Development Company. “Their point of view on how to structure and position this portfolio — and their willingness to be a true collaborative partner throughout the process — drove an execution that exceeded our expectations. On a transaction of this scale and complexity, that alignment of perspective made all the difference.”
About O’Reilly Development Company
O’Reilly Development Company, LLC is a Springfield, Missouri-based real estate developer and investor with a fully integrated platform spanning development, construction, and asset management, with a primary focus on seniors housing. The firm currently owns and operates a portfolio of 12 seniors housing communities totaling more than 1,800 units across Missouri, Kansas, and Arkansas, with several additional communities in active development. The communities maintain an average occupancy of 96%.
About Arrow Senior Living
Arrow Senior Living is a St. Charles, Missouri-based seniors housing operator specializing in the management of independent living, assisted living, and memory care communities across the Midwest. Founded in 2009, Arrow manages approximately 45 communities across eight states for some of the most prominent owners of seniors housing in the country, including Welltower, Ventas, and Kayne Anderson. Arrow has been recognized as a Great Place to Work and maintains a stabilized portfolio occupancy of 93.5%.