Bain Capital Real Estate and Capitol Seniors Housing (CSH) have closed on the sale of a seven-property portfolio of Class-A assisted living and memory care communities.
The firms did not disclose financial terms of the sale. They also did not disclose the buyer or buyers, nor the operator or operators of the properties.
The portfolio is highly amenitized and consists of 598 units across four states, according to a press release. Bain and CSH built the portfolio through an initial acquisition in 2015 and subsequent ground-up development.
“This closing helps move the industry further into the post-Covid era and solidifies our belief set long ago that the seniors housing market is receptive to Class A-plus new builds in strong, high barrier-to-entry markets,” said CSH Managing Partner Scott Stewart. “We continue to carry this strategy forward with a robust pipeline of new construction that will deliver in time to address the zenith of the Baby Boomer demographic and their families.”
Washington, D.C.-based CSH is a real estate acquisition, development and investment management firm that has acquired or developed more than 120 senior housing communities since its founding in 2003.
CSH generally has pursued a senior living model of roughly 85 units, with 75% assisted living and the balance being memory care, Stewart said last year in an appearance on the SHN podcast, Transform.
Capitol Seniors Housing also has pursued active adult developments in recent years, targeting a middle-market price point in high-growth suburbs close to larger metros.
Bain Capital Real Estate was formed in 2018. As of March 31, 2021, the firm had invested more than $5.2 billion of equity across 475 assets in multiple sectors.
“We continue to have high conviction in senior housing and believe the sector is poised to benefit from improved market fundamentals and compelling secular trends as the recovery from the COVID-19 pandemic continues to take shape,” stated Kavindi Wickremage, a managing director at Bain Capital Real Estate. “The sale of this high-quality, geographically diversified portfolio is a continuation of our long-standing partnership with Capitol Seniors Housing that focuses on creating best-in-class senior living communities that meet the evolving needs of residents.”
Pricing for Class-A product has generally held up even in the midst of the Covid-19 pandemic. In June, private equity firm Harrison Street acquired a 24-property portfolio operated by Oakmont Senior Living for $1.2 billion.
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