Morningside House Senior Living and Harrison Street Real Estate Capital of Chicago recently announced a $200 million joint venture agreement that will result in the immediate capitalization of six stabilized assisted living and memory care properties. The investment, made through Harrison Street Real Estate Partners III, LP, will provide recapitalization for six Morningside communities in suburban Washington, DC and Baltimore, Maryland that includes at total of 480 private-pay rental units that cater to affluent assisted living and memory care residents. The six properties involved in the recapitalization are: Morningside House of Ellicott City in Ellicott City, Maryland; Morningside House of Friendship in Hanover, Maryland; Morningside House of Laurel in Laurel, Maryland; Morningside House of Satyr Hill in Parkville, Maryland; Morningside House of St. Charles in Waldorf, Maryland; and Morningside House of Leesburg in Leesburg, Virginia.
"We are very fortunate to have found the perfect partner in Harrison Street for this venture, given their knowledge of the senior housing industry and their long-term approach to partnerships,” said Kelly Mason, President and CEO of Morningside.
The partnership anticipates further acquisitions in the Mid-Atlantic area and its business plan contemplates approximately $100 million in additional transactions during the next three years.
"This venture fits very well with our firm’s focus on the need-based segment of the senior housing market, and we couldn’t be more pleased with this first investment, given the strong reputation of the assets and the attractive fundamentals in these markets," said Michael Gordon, Vice President of Harrison Street. “This investment is well-aligned with our investment parameters for the senior housing space, and we view this transaction as the first of many with the Morningside team.”