Peoria – After spending several years working closely with his father in the real estate finance business, Jeff Fleischer was looking to bust out and use the entrepreneurial spirit he learned from his dad, Mort Fleischer. The younger Fleischer, along with a few partners, including Richard Boehlke of Fort Lauderdale, Fla., have formed Senexus LLC. The company initially is focusing on Arizona and Florida where it is developing and acquiring properties that will be home to seniors in the 75+ year-old range. In addition to the apartment homes, Senexus will provide its residents with meal service, activities and transportation. The key to the operating model is “affordability and allowing seniors to control their own lifestyle decisions as long as possible,” says Jeff Fleischer.”We are targeting the broad market of folks who rely on a fixed income and typically have a very limited nest egg.” The housing communities will also have supportive healthcare options on-site.
In its first deal, Senexus Properties LLC (formed by Boehlke and Flesicher) paid $8 million ($53,691 per unit) in cash to buy the 149-unit Casa del Rio apartments at 12751 N. Plaza Del Rio Boulevard in Peoria. The seller was a company formed by Lincoln National Corp. in Greensboro, N.C. The sale was brokered by Mark Forrester and Ric Holway of Hendricks & Partners in Phoenix, and Dan Wesson of H&P in Tucson. The Lincoln National entity foreclosed on Casa del Rio after the previous owner defaulted on a loan that was secured by the property. The multi-family complex, which was built in 1985, was about 60 percent leased at closing. The project has always been occupied by seniors. The one- and two-bedroom units range from 590 sq. ft. to 1,050 sq. ft. Monthly rental rates run from $1,750 to $2,350. Those rates include meals, transportation and activities. Senexus intends to spend $2 million to $3 million to upgrade Casa del Rio. That includes connecting the three-building development, adding activity space and remodeling the pool and recreation areas. That work is expected to start in November and be completed by first quarter 2013. “This is a one-off gem and a great property,” says Fleischer referring to Casa del Rio. While acquiring an existing property allows Senexus to get into the senior living business immediately, the company also has a 93-unit prototype project that it will be building in several markets, including the Phoenix and Tucson areas. Senexus also has several sites identified in the eastern part of Florida to develop new senior housing projects.
The company is looking for existing multi-family properties in the Phoenix and Tucson areas that are distressed or where there is a value-add opportunity . . . also shopping for land parcels suitable for 93 units. Boehlke, who is the guru of senior living with 40 years of experience in the industry involving 500+ properties, brings the operations and development expertise to Senexus. Fleischer, who earned his undergrad degree at Boston University and his MBA from Washington University, worked for Chase Manhattan Bank in New York City, N.Y. before heading west to join his father at FFCA (Franchise Finance Corp. of America). That Scottsdale-based company, which was traded on the NYSE, was sold for $2.1 billion to G.E. Capital in 2001. Fleischer continued working with his father after he formed Spirit Finance, another Scottsdale-based company that was traded on the NYSE. Spirit Finance was sold in 2007 for $3.7 billion to a consortium of companies led by Mcquarie, an Australian-based investment bank. Mort Fleischer, who now heads STORE Capital Corp. in Scottsdale (see related story P. 8), says he likes the business model of Senexus. “Jeffrey is sophisticated,” says Mort Fleischer. “He (Jeff) told me, ‘Dad, I want to do this’,” says the older Fleischer. “I said great – good luck.”
Learn more from Jeff Fleischer by calling (602) 448-8855. Talk to Forrester and Holway at (602) 955-1122. Reach Wesson at (520) 615-1100.
