Pinnacle Living has purchased Spring Arbor Cottages of Richmond and renamed it Hermitage Three Chopt. The assisted living facility is across the street from Pinnacle’s Cedarfield retirement community. (Jack Jacobs photo)
A local assisted living provider has scooped up two Richmond-area facilities.
Pinnacle Living recently bought the Spring Arbor of Richmond facility at 9991 Ridgefield Parkway and Spring Arbor Cottages of Richmond at 10601 Barbara Lane for a combined $9.5 million.
Pinnacle has since renamed both of the western Henrico facilities. The center on Ridgefield is now Hermitage Deep Run, and the one on Barbara Lane is Hermitage Three Chopt.
The sale price for the Deep Run facility was $6.5 million, according to online land records. The 76-unit, 56,000-square-foot facility is on a 5.5-acre property and has an assessed value of $7.9 million.
The Three Chopt property changed hands for $3 million, according to county records. It has 48 units across the 28,500-square-foot, three-building complex on 5 acres. It was most recently assessed at $6.2 million.
The deals were recorded with Henrico in early September, and Pinnacle assumed operation of the properties the same month. The seller was North Carolina-based Spring Arbor Senior Living, which continues to operate local senior living facilities at 14001 Turnberry Lane and 14020 Steeplestone Drive, both in Chesterfield.
The Deep Run and Three Chopt facilities are dedicated assisted living and memory care centers. While Pinnacle already offered those services at its other four existing facilities, CEO Christopher Henderson said the Henrico-based organization largely focuses on providing housing for seniors’ independent living and wanted to further expand its capabilities.
“They’re very different products than what we typically provide in a life-plan community, and it helps us diversify our product offerings and the clients we serve. That was really the key driver,” Henderson said.
The units at Three Chopt start at $7,960 per month. Deep Run’s assisted living studios start at $5,752 and one-bedroom assisted living units start at $6,744. Deep Run also has two-bedroom and memory support private rooms.
Deep Run has a little more than 50 residents and Three Chopt has 26 residents, and Henderson said both facilities have room to add more residents. The two facilities have 110 full- and part-time employees between them.
Henderson said Deep Run and Three Chopt are teed up for $3 million each in improvements, which are expected to kick off early 2025 and be implemented over three years.
The acquisitions bring Pinnacle to a total of six locations, all of which are in Virginia and primarily situated in the Richmond area. Pinnacle operates Cedarfield at 2300 Cedarfield Parkway and Hermitage Richmond at 1600 Westwood Ave., as well as WindsorMeade near Williamsburg and Hermitage Roanoke in Roanoke. With the new homes added in, Pinnacle houses nearly 1,300 people in its facilities and has more than 1,100 employees.
The purchases of Deep Run and Three Chopt were the first facilities acquisitions that Pinnacle has made in its seven decades in existence.
Henderson said Pinnacle is exploring additional acquisitions in the Mid-Atlantic to grow the business, and landed on acquisitions as a growth strategy because they were deemed more cost effective than continuing to build senior homes.
“As we look at the construction market, acquisition partnership is really the more financially viable option for us at this time,” he said. “We’ve got a lot of feelers out. We’re always looking.”
Pinnacle is headquartered in the Eastshore II office building at 120 Eastshore Drive in Henrico. The not-for-profit was founded in the late 1940s and is affiliated with the Methodist Church. The company previously was known as Virginia United Methodist Homes.