This transaction is expected to be the first in a series of acquisitions of senior living facilities by Arcapita as it looks to develop another sizable senior living portfolio in the United States. Arcapita’s management team has previously acquired, managed and exited from a series of senior living investments with total transaction values in excess of $1.5 billion in the United States and United Kingdom.
The current portfolio consists of three assisted living and memory care communities offering a total of 196 units and 243 licensed beds in Denver and Colorado Springs, Colorado. The modern communities were built in 2013 and 2014 and offer premium, state-of-the-art facilities including large courtyards, fireside living rooms, fitness and spa facilities, massage therapy rooms and other advanced features.
Atif A. Abdulmalik, Arcapita’s Chief Executive Officer, commented, “The Arcapita team has extensive experience investing in the senior living sector, having previously managed and exited five successful senior living transactions, all of which have returned attractive IRRs and cash-on-cash multiples to investors. We are excited about the prospects of this investment and about partnering with MorningStar, a high quality developer and operator in this sector. Our investment team will continue to pursue investment opportunities in the US real estate sector which offer investors stable income streams.”
Martin Tan, Arcapita’s Chief Investment Officer, added, “The target age group for senior living facilities in Colorado is projected to grow by almost twice the national average over the next five years. Through its experience in this sector, Arcapita has identified a seasoned operating partner in MorningStar Senior Living, a company that has deep expertise in the Western markets of the United States, and a management team with decades of operational experience in senior living.”