Morgan Stanley Investment Management—through investment funds managed by Morgan Stanley Real Estate Investing (MSREI)—announced it partnered with Brightview Senior Living to buy a portfolio of eight premium senior housing communities from Harrison Street. Harrison Street is one of the leading investment management firms exclusively focused on alternative real assets, with about $56 billion in assets under management.

Brightview originally developed this portfolio, which comprises 1,186 units across the Baltimore, Philadelphia, Providence, and Boston metropolitan areas. Brightview will continue to operate the communities.

Tens of millions of baby boomers will reach 70 or older by 2033. And this cohort’s wealth accumulation from the appreciation in equities and housing in recent years is expected to increase demand for quality senior living with care options like assisted living and nursing facilities.

The funds managed by MSREI have been actively investing in senior housing since the sector was dislocated during the COVID-19 pandemic and today have an ownership interest in about 30 senior living communities across the United States with nearly 3,000 independent living, assisted living and memory care units.

JLL Capital Markets advised the sellers on the transaction and secured Freddie Mac acquisition financing for MSREI.

KEY QUOTES:

“We are pleased to acquire this high-quality portfolio of senior housing communities that have demonstrated a track record of strong operational performance. Aging demographics, notably the accelerating growth in the 70- to 85-year-old age group, coupled with Brightview’s 25 years of providing excellent care for their residents make this an attractive investment for our investor clients.”

• Will Milam, Head of U.S. Investments at Morgan Stanley Real Estate Investing

”We are excited to partner with MSREI as we remain committed to being a great place to work for our associates and a great place to live for our residents.” 

• Brian Engle, EVP of Operations for Brightview Senior Living