Harbert Management acquires majority ownership in Dallas development company – AL.com

Birmingham’s Harbert Management Corp. announced today it will become the majority owner and manager of a Dallas-based developer of senior housing communities.

South Bay Partners has a 25-year track record in the field. Terms of the deal were not disclosed.

Founder and CEO Craig W. Spaulding, who founded South Bay in 1994, will move to an advisory role. The company’s previous president, Patrick McGonigle, will become CEO. Harbert announced that it expects to raise capital for South Bay’s development projects through a series of separately managed accounts and comingled funds.

South Bay has developed more than 10,000 units for seniors totaling more than $1 billion in cost.

HMC President and COO Travis Pritchett said South Bay’s team “brings a wealth of talent and experience developing new senior housing communities in markets around the country.”

“The team has a great pipeline of deals under control and the market opportunity should continue to grow,” Pritchett said. “This business will be very complimentary to our existing seniors housing investment platform, as it will give us control of pure development investment opportunities, but with greater flexibility to offer targeted and concentrated development risk exposure to our clients outside of our diversified, commingled seniors housing fund.”

Craig said the company will be able to “expand our reach and scope with the resources and support HMC provides.”

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