A new partnership between Related Companies and CareMax promises to shape the future of senior health care in underserved communities — and, they hope, make some money in the process.
Related is acquiring a 9 percent stake in CareMax as the companies work together to develop about 75 senior health centers over three years across urban communities in the United States, with some opening next year. Related will serve as an investor, adviser, developer and even landlord for some of the centers, according to the Wall Street Journal. CareMax will operate them.
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Related will buy $5 million in CareMax stock in the deal, in addition to receiving warrants to buy up to 8 million shares at $11.50 per share. CareMax shares closed at $12.01 Wednesday, down 9.7 percent. It is down nearly 15 percent from its Friday close.
CareMax is based in Miami and serves 65,000 people — almost a third of them seniors — through 41 medical centers in Florida. With Related’s backing, however, the company aims to expand to New York, Ohio, Texas, California and other states.
The goal of the partnership is to open around 75 new locations over the next three years. Two of the first centers will be developed in properties Related owns: one at the Bronx Terminal Market and the other at Ocean Park Apartments in Far Rockaway, Queens.
A third will open on 106th Street and 3rd Avenue in East Harlem, Pulse 2.0 reported. Those centers will offer primary care, specialists, dentistry and wellness classes.
CareMax has pioneered a business model based on monthly subscriptions instead of individual fees.
Related is known for developing office buildings, malls, apartments, and affordable housing. It built Hudson Yards, the nation’s largest private development.
[WSJ] — Holden Walter-Warner