Hunter Street Partners sold off a large portfolio of properties that cater to people with intellectual and developmental disabilities (I/DD) to an unnamed buyer.
The Minneapolis-based alternative investment management firm announced the sale of the 51-property portfolio on Tuesday to “a private real estate investment company that targets income-producing housing in the sector.” The terms of the deal were also not disclosed in a news release.
“We are excited to have found a perfect acquirer that specializes in real estate for the behavioral needs space and will continue to serve existing residents,” Neal Johnson, CEO and chief investment officer of Hunter Street Partners, said in the release.
Hunter Street Partners originally acquired 22 properties from Bridges MN, a St. Paul, Minneapolis-based I/DD services and housing provider, in 2019. This deal was Hunter Street’s first investment in the behavioral health space. At the time, the company called the investment an effort “to continue down the path of social enterprise within the disability industry”. The portfolio more than doubled its offerings of single-family, duplex, multi-family and acute care group homes since then.
Founded in 2018, Hunter Street Partners provides capital solutions to operating partner teams and lower middle market companies across corporate finance, real estate, and specialty finance, according to a news release.
“We’re proud of the solution we created with the local I/DD community and the growth of the portfolio, which provides housing and expanded service offerings for individuals with a wide range of needs while meeting the objectives of our investors,” Andrew Platt, partner at Hunter Street, said in the release.
Hunter Street Partners announced a second venture in the behavioral health space last year. In July 2020, the company announced that it joined with Minneapolis-based PE firm Healy Capital Partners to make an investment in Quincy, Massachusetts-based Ark Behavioral Health, a substance use disorder treatment provider that launched a month later. Ark Behavioral Health now operates five locations, according to its website.
Of late, the I/DD space has seen a fair share of transactions apparently accelerated by the interest pumped into behavioral health generally by the pandemic.
Earlier in the month, BHB reported that Fort Worth, Texas-based I/DD operator Caregiver Inc. made deals that expanded its footprint into the Midwest and that the nonprofit managed care organization Caresource acquired a Pennsylvania-based I/DD provider.
Hunter Street Partners has not yet returned a request for comment. This story may be updated.