Related Cos., one of the largest owners of affordable housing in the U.S., is acquiring as much as a 9% stake in healthcare provider CareMax Inc. as part of its plan to develop scores of senior health centers in underserved urban communities throughout the U.S.
Related, a developer of office buildings, malls and upscale apartments as well as affordable housing, will act as an investor, adviser, developer and, in some cases, landlord of CareMax health centers. As part of the deal, Related will buy $5 million in CareMax stock and receive warrants to purchase up to 8 million shares at $11.50 a share.
Miami-based CareMax currently operates 41 medical centers in Florida that serve 65,000 people, about 22,000 of them seniors. Founded in 2011, the firm plans to use the Related capital and expertise to expand into New York, California, Texas, Ohio and other states.
Related’s ability to exercise the warrants it received in the deal will be based partly on the opening of new centers that Related helps to create. The goal is to eventually open about 75 new locations in the next three years, according to Carlos de Solo, CareMax’s chief executive and founder.
“Our target is low-income,” Mr. de Solo said. “The seniors that need it the most are in tougher areas.”
