Investment firm Monarch Alternative Capital and senior housing company American House Senior Living Communities have formed a joint venture focused on the U.S. senior housing sector. The venture has been created to pursue the acquisition, development and management of senior housing properties across the nation.
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The JV was launched through the recapitalization of six properties partially owned by American House, as well as a single property acquired through a third party. Together, the seven comprise 1,047 units across Florida, Michigan and Ohio. There are 525 independent living, 356 assisted living and 166 memory care units in the portfolio.
Possessing the requisite capital, sourcing capabilities and operating expertise, the JV plans to avail itself of twin factors impacting the sector. One is the pandemic-fueled disruption in the senior housing industry, the other the expected supply-demand imbalance resulting from demographic and construction industry trends. On one hand, the construction of new properties has slowed considerably, while on the other, the U.S. population of baby boom generation elderly continues to grow year after year. The joint venture intends to be opportunistic in its near-term investment in additional properties.
In a prepared statement, a Monarch official termed American House a best-in-class operator providing outstanding care to the company’s residents and their families. The companies have logged prior experience in the healthcare arena, and the joint venture plans to go on the offensive as the pandemic subsides to grow through both new housing development and acquisitions of existing senior housing communities.
Nearly two decades old, Monarch has approximately $9 billion in assets under management. American House Senior Living Communities was founded in 1979 and provides housing in the Midwest, New England, Florida and the Southeast.