Arcapita, MorningStar partner in $85 million acquisition

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A MorningStar community.
A MorningStar community.

In a transaction valued at about $85 million, global investment management firm Arcapita has acquired a privately held portfolio of senior living communities in Colorado in a joint venture with Denver-based MorningStar Senior Living.

Arcapita said it expects the transaction to be the first in a series of senior living community acquisitions as it looks to develop another sizable senior living portfolio in the United States. The company's management team has previously acquired, managed and exited from a series of senior living investments with total transaction values of more than $1.5 billion in the United States and United Kingdom.

The recently acquired 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, CO. The communities were built in 2013 and 2014 and offer amenities that include large courtyards, fireside living rooms, fitness and spa facilities, massage therapy rooms and other features.

“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 internal rates of return and cash-on-cash multiples to investors,” Atif A. Abdulmalik, Arcapita's CEO, said in a statement.

The number of Colorado residents in the target age group for senior living communities is projected to grow by almost twice the national average over the next five years, Martin Tan, said Arcapita's chief investment officer.

Arcaptia has offices in Atlanta, London, Bahrain and Singapore. In addition to Colorado, MorningStar operates communities in Arizona, Idaho, Montana, Nevada, New Mexico and Wyoming.

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