MANAMA: Arbah Capital announced the financial closing and launch of a $36 million project in the growing sector of senior care facilities in the US, with real estate developer Madison Marquette and senior care operator Meridian Senior Living, both of whom have also co-invested in the project.
The first development in a planned pipeline is of $36m and is a premier Class A Senior Living community with 136 units/144-beds of Assisted Living and Memory Care, located 12 miles to the east of downtown Tampa, in Brandon, Florida.
The investment strategy is to exploit the opportunity to develop and provide the best community experience and facility in an undersupplied sub-market at rates comparable to existing ‘older’ facilities.
Despite the current very unfortunate challenges due to Covid-19, the project development has remained unaffected and is on track since work on site commenced in February 2020.
The facility will aim to initiate operations at the start of 2022 and aim to achieve occupancy stabilisation within two years before an exit is proposed.
A market study by Integra Realty Resources concludes that the submarket is currently underserved by over 600 units.
Madison Marquette, the development manager, has an investment portfolio in excess of $6 billion and a track record of more than 25 per cent IRR on exits throughout 25 years of operations.
Meridian Senior Living is headquartered in Washington DC managing over 74 communities across the country in 21 states in addition to Washington DC.
It also has development experience and provides unique insight into design from a very operational perspective.
Arbah Capital chief executive Mahmood Al Kooheji said: “This investment represents the key philosophy of Arbah to find for its investors the right growth segments, and to structure investments in those segments with leading partners who have a proven track record. Arbah’s reputation and professionalism attracts best in class partners to offer value-added investments to its investors.”
&uuid=(email))