Madison Marquette Acquires Portfolio of Six Senior Living Communities in JV with GFH Financial Group

Madison Marquette Acquires Portfolio of Six Senior Living Communities in JV with GFH Financial Group

WASHINGTON, DC - Madison Marquette, a national private fully-integrated real estate services provider and investment manager, in a joint venture with GFH Financial Group B.S.C. (GFH), a Bahrain-based asset management, wealth management, and commercial real estate development group, announced the acquisition of a portfolio consisting of six private-pay senior living communities in California, Washington and Michigan. 

The Communities comprise 509 units/589 beds with a unit mix of independent living, assisted living and memory care; and are operated by Senior Resource Group, JEA Senior Living and Senior Village Management — three best-in-class senior living operators. The two parties have formed a joint venture entity, which will own the assets, with GFH as the Investment Manager and Madison Marquette 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" said Amer Hammour, Chairman of Madison Marquette. "Additionally, 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."

The properties comprising the portfolio include: 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.

The Portfolio is stabilized (92% average occupancy, avg. 1Q 2019) and diversified by acuity, location, and operator, and is comprised of three distinct sub-portfolios each managed by one operator: (i) Independence Village (Brighton, MI); (ii) Chateau Portfolio (Sacramento, CA); and (iii) JEA Memory Care Portfolio (Washington State). 

"With healthy occupancy, strong market demand, and an industry standard NOI margins of 34.4%, this portfolio offers attractive and stable in-place cash flows, and should be well-positioned for additional growth through incremental rate increases during the hold period," said Salime Yacoubi, Managing Director/Investments, Madison Marquette. "We intend for this to be an anchor transaction that will grow our acquisition activities in the senior living space."

"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. The increase in Baby Boomers approaching 70+ is creating unmet demand in this segment of the market and we are excited that our partnership with Madison Marquette will allow us to benefit from that expected growth," commented Hisham Alrayes, CEO of GFH.

Source: Madison Marquette / #Senior #Housing

More Stories

Get The Newsletter

Get The Newsletter

The latest multifamily industry news delivered to your inbox.