DENVER — Investment funds managed by Morgan Stanley Real Estate Investing (MSREI) have acquired a seniors housing portfolio for $305 million. Kayne Anderson was the seller. Totaling 463 units, the portfolio features three communities located near Denver.
“We are pleased to acquire this high-quality portfolio of senior housing communities, which has demonstrated strong historical performance,” says Will Milam, head of U.S. investments at MSREI. “As people age, their real estate needs evolve, and as the first Baby Boomers are turning 80 this year, demand for senior housing is rising rapidly. We expect this sector to grow nearly 5 percent annually over the next five years as this population cohort expands.”
MorningStar will continue to operate the communities on behalf of the new ownership.
Funds managed by MSREI currently have an ownership interest in approximately 30 senior living communities comprising 3,000 units across the United States.