Joint Venture Acquires 108-Unit MorningStar at Arcadia in Phoenix

by Jeff Shaw

PHOENIX — A joint venture between Sabal Investment Holdings, 12 North Capital LLC and affiliates of MorningStar Senior Living has acquired MorningStar at Arcadia in the Biltmore neighborhood of Phoenix.

The property consists of 78 assisted living suites across studio, one-bedroom, and two-bedroom floorplans as well as 30 memory care suites.

The community was purchased in a special situation transaction via auction facilitated through a federal receivership. The venture is planning a targeted capital expenditure program at the asset to facilitate a series of enhancements aimed at improving resident experience, optimizing occupancy and bolstering value. 

MorningStar Senior Living, which currently manages the facility, will be retained as the property manager under the new ownership.

“Purchased below replacement cost, this high-quality asset offers substantial upside potential,” says Jon Mirkin, managing director with Sabal Investment Holdings. “Logical upgrades will ideally position its units and services for Phoenix seniors looking for quality living and care.”

Planned improvements include a cosmetic refresh to common areas including the main entrance lobby, dining room, theater and other amenity spaces, along with the reconfiguration of smaller assisted living units to meet local demand for larger and more functional living spaces. Exterior painting and landscaping improvements are also planned.

“This acquisition highlights our strategy of partnering with premier owner/operators in high-quality, newer vintage seniors housing communities,” says Frank Small, founder and managing principal of 12 North Capital. “We remain bullish on the future prospects of seniors housing given the positive secular trends, near-term capital market dislocation and dynamic investment landscape.”

Aron Will and Michael Cregan of CBRE National Senior Housing arranged financing for the transaction. Neither the amount of financing nor the acquisition price were disclosed.

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