Veteran Services USA Completes $225M National Portfolio Acquisition
Will Convert 1.6 Million Square Feet across 10 Cities Into Adaptive, Mixed-Use Properties
MIAMI--(BUSINESS WIRE)-- Officials with Veteran Services USA, a Miami-based organization, announced today the $225 million purchase of ten properties across the United States totaling more than 1.6 million square feet. The company intends to redesign and convert existing buildings into mixed-use destinations offering hotel guests a newly-conceived line of Radisson Hotel accommodations with separate studio and one-bedroom residential apartments for Veterans age 55 and over living on a fixed income. SarahCare, a nationally-recognized brand founded in 1985 providing senior daytime care and activities, will lease space for new SarahCare facilities at several locations.
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“Repurposing vacant properties is an economic driver for sustainability across the nation. Our adaptive reuse model will energize shuttered hotels, hospitals and shopping malls developing new uses such as living spaces, educational facilities and community anchors. A hotel’s structure, with abundant plumbing and easy-to-move walls, makes it more cost-effective to convert to living quarters when compared to developing a new property,” said Charles Everhardt, principal at Lockwood Asset Management, developer and project partner. “In turn, our senior Veterans benefit from affordable residential options, including hotel style amenities, while also ‘right-sizing’ vacant buildings that have not kept up with demand for the specific needs of growing communities.”
The Veteran Affairs Mission Act of 2018 set the stage for a sweeping expansion of Veterans services in this country. “We will change the lives of aging communities in every state while serving as a resource for Veterans on fixed incomes to secure permanent housing, physical and mental assistance, including vocational upskilling for transitioning servicemembers,” said Eddie Dovner, principal at Veterans Services USA. “We are creating a mixed-use, urban model, which reduces isolation for aging Veterans and answers a growing need for senior day care services.”
“The strategic alignment between Radisson Hotel Group Americas, Veteran Services USA, Lockwood Asset Management, and Commonwealth Hotels continues to define the fast-paced vitalization of Radisson throughout the globe. This unique concept of redefining the large full-service hotels into more efficient mixed-use facilities, with profitability top-of-mind, has been discussed for years; the vision of Lockwood Asset Management, Veteran Services USA combined with the operational skills of Commonwealth Hotels has brought the concept to life,” added Phil Hugh, chief development officer, Radisson Hotel Group Americas. “Radisson Hotel Group Americas is honored to be selected as the brand of choice for the concept and is proud to be able to give new options to the Veterans of this great country.”
In addition to the residential space and SarahCare facilities, the building’s large-scale, existing kitchen facilities will be available for lease to any restaurateur or chef seeking to expand their food business by operating a Ghost Kitchen. This global trend will support the growing demand for Uber Eats, GrubHub, Door Dash and food delivery options that can be a drain on existing brick and mortar revenues where specialized delivery options are outpacing the demand for indoor dining.
Ten properties acquired by Veteran Services USA and Lockwood Asset Management are in the following locations. Austin, Texas, Dayton, Ohio, Houston, Texas, Jackson, Miss., Marietta, Ga., Memphis, Tenn., Orlando, Fla., Reading, Pa., Trenton, N.J. and Tulsa, Okla. Eddy Nevarez, associate director of Marcus & Millichap was the exclusive agent representing the buyer for nine of the properties.
About Veteran Services USA
Veteran Services USA (VSUSA) is an organization with a mission to support Veterans and seniors by offering programs designed to ensure successful life transitions with affordable, independent housing, healthcare, and social service programs across the U.S. For recently transitioned Veterans, VSUSA seeks to provide transitional sponsorship and career support programs, with a focus on mental health and suicide reduction.
Lockwood Asset Management is a real estate development and investment firm with more than 30 years’ experience. Lockwood Asset Management is committed to being the leading developer and provider of best-in-class housing facilities with related services for veterans and their families, ensuring that veterans are treated and cared for in compassionate, dignified and professional environments that allow them to achieve optimal levels of independence while assisting them to reacquire life skills and the ability to live in broader communities.
With eight individual brands and more than 1,500 hotels internationally, Radisson Hotel Group Americas is one of the largest, most dynamic hotel groups in the world. The Radisson Hotel Group Americas portfolio includes Radisson Collection, Radisson Individuals, Radisson Blu, Radisson, Radisson RED, Park Plaza, Park Inn by Radisson, and Country Inn & Suites by Radisson.
SarahCare Adult Day Services operates two unique and 24 franchised locations in the U.S. SarahCare offers seniors daytime care and activities ranging from exercise and medical needs on a daily basis to nursing care and salon services. Those who visit benefit from these services that include specialized dietary menus and engaging social activities allowing them to continue to lead active and enriched lives.
About Commonwealth Hotels
Commonwealth Hotels, LLC was founded in 1986 and is a proven partner in providing hotel management services with superior financial results. The company has extensive experience managing premium branded full service and select service hotels. Commonwealth Hotels currently manages 61 properties with over 7,000 rooms.
Sheila A. Moore, APR
Source: Veteran Services USA