Arcapita acquires $110m US senior housing

Manama : Bahrain-based investment management firm, Arcapita said it had acquired a privately-held portfolio of three senior living communities in the US. 

The total transaction value of the facilities located in the metropolitan areas surrounding Washington D.C. and Atlanta are estimated at around $110 million

The properties will be managed by an affiliate of The Arbor Company, a manager specialising in this sector. 

The move follows the company’s acquisition of three senior living communities for approximately $87m in Colorado earlier this year, building an approximately $200m portfolio in the senior living sector in the United States.

Arcapita’s current US Senior Living portfolio consists of six independent living, assisted living and memory care communities offering a total of 506 units in the metropolitan areas surrounding Washington D.C., Atlanta, Denver and Colorado Springs. 

Commenting on the deal, Atif A. Abdulmalik, Arcapita’s Chief Executive Officer, commented, “Our team has extensive experience investing in the senior living sector, having managed and successfully exited five senior living portfolios, consisting of over 74 properties, in the past. Previous investments both in the United States and United Kingdom have returned attractive IRRs and cash-on-cash multiples to investors.”

Martin Tan, Arcapita’s Chief Investment Officer, added, “The senior population is the fastest growing demographic in the United States and the 65+ age group is expected to double in size by 2050.”