Arcapita Bets $85M on Colorado Senior Living Market

Atlanta-based Arcapita has paid approximately $85 million for a three-property senior living portfolio in Denver and Colorado Springs.
Arcapita Senior Living community

Arcapita Senior Living community

Denver—Global investment management firm Arcapita has joined forces with MorningStar Senior Living to purchase a privately-held senior living portfolio in Colorado. The price tag for the three-asset portfolio was approximately $85 million.

The portfolio consists of three assisted living and memory care facilities comprising 196 units and 243 licensed beds in Denver and Colorado Springs. Built from 2013 to 2014, the communities feature state-of-the-art amenities, including large courtyards, fireside living rooms, fitness and spa facilities, and massage therapy rooms, among others.

“The target age group for senior living facilities in Colorado is projected to grow by almost twice the national average over the next five years,” Martin Tan, CIO of Arcapita, said in a statement. “Through its experience in this sector, Arcapita has identified a seasoned operating partner in MorningStar Senior Living, a company that has deep expertise in the Western markets of the United States, and a management team with decades of operational experience in senior living.”

The acquisition is the first of a series of senior living investments that Arcapita plans to undertake. The company has previously acquired, managed and exited from a series of senior living investments with a total value of more than $1.5 billion in the U.S. and the U.K.

“The Arcapita team has extensive experience investing in the senior living sector, having previously managed and exited five successful senior living transactions, all of which have returned attractive IRRs and cash-on-cash multiples to investors,” Atif Abdulmalik, CEO of Arcapita, explained.

Formerly Crescent Investments Inc., Arcapita is a Delaware-incorporated holding and real estate company wholly owned by Bahrain-based Arcapita Bank.