Mcap Buys 20 Commonwealth Communities And Majority Interest From Invesque

Commonwealth Senior Living again has just one financial partner following Municipal Capital Appreciation Partners (MCAP) repurchasing 20 of its communities formerly owned by Invesque.

MCAP purchased the communities from real estate investment trust (REIT) Invesque, which in 2024 sold its interest in Commonwealth and is now seeking to offload “all of substantially all” of its assets. Now, MCAP has a 70% majority ownership in the Charlottesville, Virginia-based senior living management company.

“MCAP or its affiliates own all 33 of the communities that we manage. We anticipate continuing to grow as part of this acquisition,” Commonwealth CEO Earl Parker told Senior Housing News.

Terms of the deal were not disclosed.

MCAP was the co-founding financial partner for Commonwealth back in 2002 when it purchased three communities and assigned them to the operator. Those original three are included in the 20 that were sold to Invesque in 2019 and now part of the repurchase.

Right out of the gate, Parker said MCAP has set aside “a significant capital investment” to update and refresh the portfolio, which are anticipated to be completed by the end of 2025.

Updates are going to span from minor, such as retooling dining rooms and replacing floors, to full furniture, fixture and equipment upgrades, depending on the needs of the community and new competition in the area.

Overall, Parker anticipates operating will be easier with just one financial partner due to no longer having to juggle differing wants, needs and strategies.

“We had a very good relationship with Invesque, but I would say having one just will make it a little bit easier for reporting and a unified strategy,” Parker said.

All but one of the 20 communities MCAP repurchased are located in Virginia, with the remaining community being located in Pennsylvania. The management company is planning on looking for additional growth opportunities with acquisitions, though Parker noted it would unlikely be more than one or two assets at a time.

When looking for acquisition opportunities, Parker said the goal will be to expand the existing footprints in Virginia, Maryland, Pennsylvania and Michigan. Typical building types that will fit into the Commonwealth portfolio tend to offer multiple product types between independent living, assisted living and memory care and have a minimum of 80 units.

The plan for now, Parker said, is to focus on moderate growth and “what we do” with a care coordination initiative and scaling up wellness and value-based care initiatives.

Overall, Parker noted he is excited to continue working with MCAP in the coming years.

“I think it’s a good opportunity for us to again, work exclusively with the group that helped the company and that we’ve been working with collaboratively for the last 23 years,” he said.

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