Madison Marquette, GFH Financial Group Buy 6-Building Senior Housing Portfolio
The joint venture purchased properties located in California, Washington and Michigan totaling 509 units.
Madison Marquette has teamed up with GFH Financial Group to buy six senior living properties. The multi-state portfolio includes Independence Village at 7700 Nemco Way in Brighton, Mich., Callaway Gardens at 5505 W. Skagit Court in Kennewick, Wash., Summer Wood in Moses Lake at 830 NW Sunburst Court in Moses Lake, Wash., Pine Ridge at 12009 E. Mission Ave. in Spokane, Washington, and Chateau at River’s Edge at 641 Feature Drive and Chateau on Capitol Avenue at 2701 Capitol Ave., which are both in Sacramento, Calif.
The 509-unit portfolio represents 589 beds that are a mix of independent living, assisted living and memory care. The properties also hold a 92 percent occupancy rate since the first quarter of 2019. The various buildings are operated by Senior Resource Group, JEA Senior Living and Senior Village Management.
In the joint venture, GFH will be the investment manager while Madison Marquette will be the day-to-day manager. Salime Yacoubi, Madison Marquette’s manager director of investment, said the purchase will be an anchor for their future transactions in the senior living market. Madison Marquette also recently merged with PMRG, who secured $75 million in financing for a luxury residential tower in Denver.
SLOWDOWN FOR SENIOR HOUSING MARKET
While the senior housing market seemed strong in the last few years, the sector experienced a small speed bump in the latest quarter, according to the National Investment Center for Senior Housing & Care’s second quarter report.
The occupancy rate dropped from the first quarter of 2019’s 88 percent to the second quarter’s 87.8 percent, the lowest level since 2011, according to the report. The annual rent growth came in at 2.9 percent, down from the 3.1 percent from the last two quarters, the report added.