Bahrani Investor, Madison Marquette Acquire $180M Senior Housing Portfolio

Madison Marquette, a Washington, D.C.-based real estate investment manager and real estate services provider, partnered with a Bahraini investment firm to acquire a six-property senior housing portfolio.

GFH Financial Group announced the acquisition on Tuesday, valuing the deal at over $180 million. The portfolio totals 509 units/589 beds in a mix of private-pay independent living, assisted living and memory care in California, Michigan and Washington. It is 92% occupied, with net operating income margin of about 34%, Madison Marquette stated in a press release.

The portfolio is operated by Brighton, Michigan-based Senior Village Management; Solana Beach, California-based Senior Resource Group; and Vancouver, Washington-based JEA Senior Living. JEA and Senior Resource Group have co-invested in their respective properties, according to a press release issued by GFH.

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The portfolio includes:

  • Independence Village, Brighton, Michigan
  • Chateau at River’s Edge, Sacramento, California
  • Chateau on Capitol Ave, Sacramento, California
  • Callaway Gardens, Kennewick, Washington
  • Summer Wood, Moses Lake, Washington
  • Pine Ridge, Spokane, Washington

This is the first joint venture between the two firms, Madison Marquette Managing Director Salime Yacoubi told Senior Housing News. GFH will serve as the investment manager, while Madison Marquette will handle the portfolio’s day-to-day management.

The joint venture also plans to use the portfolio as an anchor to expand its holdings in the senior living space.

“We are currently focused on acquiring stabilized or near stabilized properties with strong in-place cash flow in submarkets with demonstrated demand growth and limited future supply,” Yacoubi said.

Outside of the JV with GFH, Madison Marquette is exploring value-add and development opportunities across the country.

GFH is bringing significant capital to the space. Last week, the firm completed an acquisition of U.S. tech offices within North Carolina’s Research Triangle Park valued at over $100 million. It has invested over $1 billion in U.S. real estate over the last five years.

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