Madison Marquette Announces Investment into Senior Living Category
WASHINGTON, D.C.--July 24, 2019—Madison Marquette, a national private fully-integrated real estate services provider and investment manager, in a joint venture with GFH Financial Group B.S.C. (GFH), a Bahrain-based asset management, wealth management, and commercial real estate development group, announced today the acquisition of a portfolio consisting of six private-pay senior living communities in California, Washington and Michigan. The Communities comprise 509 units/589 beds with a unit mix of independent living, assisted living and memory care; and are operated by Senior Resource Group, JEA Senior Living and Senior Village Management — three best-in-class senior living operators. The two parties have formed a joint venture entity which will own the assets, with GFH as the Investment Manager and Madison Marquette as the day-to-day manager of the portfolio.
“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” said Amer Hammour, Chairman of Madison Marquette. “Additionally, we are very pleased to be partnering with GFH on this seed portfolio” Mr. Hammour added “and look forward to deepening our partnership in the space with them.”
The properties comprising the portfolio include: Independence Village, Brighton, MI; Chateau at River’s Edge, Sacramento, CA; Chateau on Capitol Ave, Sacramento, CA; Callaway Gardens, Kennewick, WA; Summer Wood, Moses Lake, WA; and Pine Ridge, Spokane, WA.
The Portfolio is stabilized (92% ave occupancy, avg. 1Q 2019) and diversified by acuity, location, and operator, and is comprised of three distinct sub-portfolios each managed by one operator: (i) Independence Village (Brighton, MI); (ii) Chateau Portfolio (Sacramento, CA); and (iii) JEA Memory Care Portfolio (Washington State).
“With healthy occupancy, strong market demand, and an industry standard NOI margins of 34.4%, this portfolio offers attractive and stable in-place cash flows, and should be well-positioned for additional growth through incremental rate increases during the hold period,” said Salime Yacoubi, Managing Director/Investments, Madison Marquette. “We intend for this to be an anchor transaction that will grow our acquisition activities in the senior living space.”
“This transaction represents an attractive opportunity to establish a foothold in the senior living market by acquiring a diversified pool of established income producing assets with industry leading operators. The increase in Baby Boomers approaching 70+ is creating unmet demand in this segment of the market and we are excited that our partnership with Madison Marquette will allow us to benefit from that expected growth. “commented Hisham Alrayes, CEO of GFH.
About Madison Marquette
As a full-service real estate provider, Madison Marquette delivers integrated leasing and management services to a diverse portfolio of 330 assets in 24 states and manages an investment portfolio valued at over $6 billion. The company is a leading private real estate service provider, investment manager, developer, and operator headquartered in Washington, D.C. Founded in 1992, Madison Marquette’s reputation is built on the successful development, repositioning and redevelopment of landmark mixed-use assets in major and emerging high-growth markets throughout the United States. Madison Marquette partners with global, institutional and private investors to provide industry-leading services, advice and investment performance across asset classes -- including mixed-use, retail, office, medical, industrial, senior living and multi-family. Madison Marquette has over 600 professionals providing nationwide service from 13 regional markets and is a member of the Capital Guidance group of companies. For additional information about Madison Marquette, visit www.madisonmarquette.com.
About GFH Financial Group
GFH is one of the most recognized financial groups in the Gulf region. Its businesses include Asset Management, Wealth Management, Commercial Banking and Real Estate Development. The Group’s operations are focused in the GCC, North Africa, India, United States and United Kingdom. GFH is listed in Bahrain Bourse, Kuwait Stock Exchange and Dubai Financial Market. For more information, please visit www.gfh.com.