Morgan Stanley Investment Management and MorningStar Senior Living have announced that investment funds managed by Morgan Stanley Real Estate Investing (MSREI) have acquired a senior housing portfolio from Kayne Anderson Real Estate for $305 million. The portfolio consists of 463 units across three communities near Denver, Colorado. MorningStar will continue to operate the properties.
Will Milam, Head of U.S. Investments at Morgan Stanley Real Estate Investing, commented on the acquisition: “We are pleased to acquire this high-quality portfolio of senior housing communities, which has demonstrated strong historical performance. As people age, their real estate needs evolve and as the first Baby Boomers are turning 80 this year, demand for senior housing is rising rapidly. We expect this sector to grow nearly 5% annually over the next five years as this population cohort expands.”
Jamie Ranzan, President and CIO for MorningStar, said: “MorningStar is proud to begin our new partnership with Morgan Stanley Real Estate Investing, marked by their acquisition of three stand-out Colorado assets—an exciting start to a strong future together.”
Since 2022, MSREI-managed funds have invested in senior housing and now hold ownership interests in about 30 senior living communities across the United States with nearly 3,000 independent living, assisted living and memory care units.
MorningStar Senior Living operates or develops more than 40 retirement communities representing over 5,000 units in 11 states in the Midwest and Western United States. In Colorado alone it manages 14 communities and employs more than 1,300 people.
Morgan Stanley Real Estate Investing manages $53 billion in gross real estate assets globally through various investment strategies. The business maintains offices across the U.S., Europe and Asia.
Morgan Stanley Investment Management oversees $1.8 trillion in assets under management or supervision as of September 30, 2024.
Morgan Stanley provides financial services including investment banking, securities trading, wealth management and investment management worldwide through its offices in 42 countries.