MBK Real Estate, the Irvine, California-based subsidiary of Tokyo-based Mitsui & Co., Ltd., has announced an agreement to acquire nine senior housing properties from West Living for $382 million.
MBK Senior Living, the senior living division of MBK Real Estate, will manage the properties, which are located in California, Washington and Arizona. MBK Real Estate currently owns and/or manages 25 senior living properties in six states—a number that will grow to 34 once the deal closes as soon as late June.
Looking ahead, MBK Real Estate’s strategy will be to maintain the nine properties through quality of service initiatives, renovations, and sales and marketing methods based on local demand. Furthermore, the newly acquired properties are located close to properties MBK currently owns or manages, allowing a more efficient operation, the company said.
Like many other operators and owners in the senior living space, MBK’s decision to expand was based in part on the growing number of older adults in the U.S.
“In the United States, as in Japan, the elderly population is increasing,” MBK wrote in a press release, citing U.S. Census Bureau data. “It is expected that the population of adults over 65 years old will increase to 98 million by 2060, accounting for 24% of the whole population, from 46 million people in 2014, the equivalent of 15% of the whole population.”
In 2016, MBK aimed to double its portfolio in the two years that followed, even while the company sought to fill the vacancy left by the resignation of former president Terry Howard. And while it appears as though that expansion push is still ongoing, the leadership role was filled in 2017 when the company hired Jeff Fischer, former Steadfast Companies executive vice president, to serve as its president.
Neither MBK Real Estate or West Living could be reached for further comment by press time today.
Written by Tim Regan