Arcapita, MorningStar Acquire Three Communities in Colorado for $85M

by Jeff Shaw

DENVER and COLORADO SPRINGS, Colo. — A joint venture of Arcapita, a global investment management firm, and MorningStar Senior Living, an owner/operator based in Denver, has acquired a three-community seniors housing portfolio in Denver and Colorado Springs for $85 million.

The portfolio totals 196 units of assisted living and memory care. The communities were built in 2013 and 2014. The communities are MorningStar at Mountain Shadows, MorningStar at Bear Creek and MorningStar at Jordan.

The sellers of the properties were a combination of MorningStar and affiliated entities. MorningStar will continue to operate the communities.

Lisa Widmier, executive vice president of CBRE National Senior Housing, and Matthew Whitlock, executive vice president of CBRE National Senior Housing, represented the sellers.

Aron Will, executive vice president of CBRE National Senior Housing, arranged a $53 million, non-recourse floating rate loan as acquisition financing on behalf of the buyers. The loan includes a three-year term with 24 months of interest-only payments from a national bank.

Arcapita, which is based in the small middle-eastern island country of Bahrain, plans on many more U.S. seniors housing acquisitions in the near future. The investment firm previously acquired, managed and sold a $1.5 billion seniors housing portfolio in the U.S. and U.K.

Colorado was specifically targeted because its seniors population is projected to grow at twice the national average over the next five years, according to Martin Tan, Arcapita’s chief investment officer.

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