Investcorp Plans $1b In Senior Living Investments Over Next Three Years

Global investment manager Investcorp announced its re-entering the senior living sector with the acquisition of two senior living properties in California and New York.

The $200 million acquisition is the first wave of the firm’s plan to invest more than $1 billion in senior housing assets over the next three years, according to a news release. The company had exited senior living before rejoining the fray with the latest transaction.

The transaction includes a 148-unit senior living property in Orange County, California and a 116-unit senior living property in Long Island, New York. The properties have an average occupancy of 94%, the release states.

The $200 million portfolio included one multi-family property and two senior living properties located in Los Angeles and New York metro areas. Prior to the latest acquisition, Bahrain-based Investcorp acquired a 140-unit senior living community in Boston.

The acquisitions represent the “strategic expansion” and growth of the company’s senior living and residential portfolios, U.S. Real Estate Co-Head Michael O’Brien said in the release.

Investcorp cited multiple factors for re-entering the senior living investment space, including the “strong opportunity” driven by demographic trends. Additionally, the sector is primed to experience the strongest growth of any U.S. real estate sector through 2029, according to Green Street Advisors.

“Our decision to re-enter the senior housing sector reflects the strong opportunity we see in the asset class, and we believe it’s poised for sustained performance due to the nation’s rapidly growing senior population, which has meaningfully increased demand for these assets amid stalling inventory growth,” O’Brien said in the release.

Investcorp previously held senior living assets, including two properties with Sunrise Senior Living in New York and Pennsylvania as part of a joint venture that the firm exited in 2008.

A spokesperson for Investcorp declined to comment further on the transaction as of Tuesday afternoon.

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