Morgan Stanley, MorningStar Pay $305M for Senior Housing Portfolio
Kayne Anderson Real Estate sold the Denver-area assets.
Morgan Stanley Investment Management and MorningStar Senior Living paid $305 million for a 463-unit senior housing portfolio consisting of three communities in Denver.
The seller is Kayne Anderson Real Estate.
The partners made the purchase through funds managed Morgan Stanley Real Estate Investing. It represents the first deal with MorningStar, which will remain the manager of the properties.
Amid evolving senior housing trends, funds managed through MSREI have increased stheir activity in the space since 2022. Now, the private real estate investing arm has ownership stakes in roughly 30 senior living communities spread across the country and totaling nearly 3,000 independent living, assisted living and memory care units.
READ ALSO: Senior Housing Turns a Corner—Thanks to the Banks
In late 2024, funds managed by MSREI purchased a portfolio of eight senior housing communities spread across four states. The properties include 1,186 beds and changed ownership from a joint venture between Harrison Street and Brightview Senior Living, which retained an ownership interest in the portfolio and continued to manage the assets.
MorningStar has 40 properties under operation or development, consisting of over 5,000 units across 11 states in the Midwest and Western U.S. In Colorado, the operator has 14 senior housing communities.
Senior housing’s growth spurt
The senior housing sector’s occupancy rate improved to 88.7 percent as of the third quarter of 2025, a recent NIC MAP report shows. This represents the seventeenth consecutive quarter of improvement, indicating a strong consumer demand for the sector.
Meanwhile, elsewhere in the West, a partnership between Redwood Housing Partners and Hearthstone Housing Foundation picked up two affordable senior housing properties in a $160 million deal. The duo is in Orange, Calif., and changed ownership from Living Opportunities Management Co.
In another recent financial move, a New York City-based boutique real estate investment firm teamed up with senior housing and health care veteran Kelly Sheehy to launch Arcole, a senior housing investment platform. Town Lane, headed by Tyler Henritze, is backing this fund with nearly $1.3 billion, with plans to pursue value-add opportunistic senior housing assets across the country.
