Washington, DC-based real estate services provider and investment manager Madison Marquette has entered into a joint venture to acquire a portfolio of six U.S. senior living communities with Dubai-based GFH Capital, a subsidiary of Bahrain-based asset management, wealth management and commercial real estate development company GFH Financial Group, the two organizations announced Tuesday.

GFH valued the deal at more than $180 million. A spokeswoman for Madison Marquette told McKnight’s Senior Living that the transaction is GFH’s first in the U.S. senior housing market.

“This transaction represents an attractive opportunity to establish a foothold in the senior living market by acquiring a diversified pool of established income producing assets with industry-leading operators,” GFH CEO Hisham Alrayes said.

The deal also marks Madison Marquette’s first venture with GFH.

“We are very pleased to be partnering with GFH on this seed portfolio and look forward to deepening our partnership in the space with them,” Madison Marquette Chairman Amer Hammour said.

The joint venture will own the assets, with GFH serving as the investment manager and Madison Marquette serving as the day-to-day manager of the portfolio.

“Through our recent platform activities in the space, we have studied the senior living sector carefully and have timed this transaction to benefit from what we believe are short-term industry dislocations and long-term demographic tailwinds,” Hammour said.

The private-pay communities have a total of 509 units / 589 beds with a unit mix of independent living, assisted living and memory care. They are operated by JEA Senior Living, Senior Resource Group and Senior Village Management. Overall occupancy in the portfolio was 92% in the first quarter, according to Madison Marquette.

The properties:

  • Independence Village, Brighton, MI;
  • Chateau at River’s Edge, Sacramento, CA;
  • Chateau on Capitol Ave, Sacramento, CA;
  • Callaway Gardens, Kennewick, WA;
  • Summer Wood, Moses Lake, WA; and
  • Pine Ridge, Spokane, WA. 

“We intend for this to be an anchor transaction that will grow our acquisition activities in the senior living space,” said Salime Yacoubi, managing director/investments, Madison Marquette.