Bahrain’s Arcapita acquired a privately-held portfolio of senior living communities in Colorado, United States, in a joint venture with MorningStar Senior Living, worth approximately $85m (BHD32m).
The transaction is expected to be the first in a series of acquisitions of senior living facilities by the investment management firm, 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 $1.5bn (BHD565.56m) in the United States and United Kingdom.
The company’s current portfolio consists of three assisted living and memory care communities, offering a total of 196 units and 243 licensed beds in the Denver and Colorado Springs areas of Colorado.
The modern communities were built in 2013 and 2014 and offer a range of facilities, including large courtyards, fireside living rooms, fitness and spa facilities, and massage therapy rooms.
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.”
