Madison Marquette, GFH Financial Acquire Six-Property Senior Living Portfolio for Over $180M
CALIFORNIA, WASHINGTON AND MICHIGAN — Madison Marquette and GFH Financial Group have acquired a portfolio of six private-pay senior living communities in California, Washington and Michigan. Although a specific purchase price was not provided, GFH described the deal as “exceeding $180 million in value.”
The properties include: Chateau at River’s Edge and Chateau on Capitol Ave in Sacramento, Calif.; Callaway Gardens in Kennewick, Wash.; Summer Wood in Moses Lake, Wash.; Pine Ridge in Spokane, Wash.; and Independence Village in Brighton, Mich.
The communities total 509 units and feature a mix of independent living, assisted living and memory care. The occupancy as of the first quarter was 92 percent, and GFH notes that most of the assets were recently renovated and able to attain above-market rents. Senior Resource Group, JEA Senior Living and Senior Village Management operate the properties.
GFH, an investment firm from the tiny Middle Eastern island country of Bahrain, will serve as the investment manager while Madison Marquette will serve as the day-to-day manager of the portfolio. GFH will be 91 percent owner, while Madison Marquette will own 6 percent. The communities’ operators will own the remaining 3 percent stake.
“Through our recent platform activities in the space, we have studied the senior living sector carefully and have timed this transaction to benefit from what we believe are short-term industry dislocations and long-term demographic tailwinds,” says Amer Hammour, chairman of Madison Marquette.
Headquartered in Washington, D.C., Madison Marquette manages an investment portfolio valued at more than $5 billion and provides integrated leasing and management services to a portfolio of 330 assets in 20 states.
— Kristin Hiller