LOS ANGELES (August 14, 2024) – A joint venture between Sabal Investment Holdings (“Sabal”), the investment management firm serving institutional investors across the U.S., 12 North Capital LLC, an investment management and advisory firm, and affiliates of MorningStar Senior Living, a senior housing management firm, today announced the acquisition of MorningStar at Arcadia, a senior housing community located in Phoenix, Arizona.

Located at 3200 E Glenrosa Avenue, MorningStar at Arcadia offers assisted living and memory care to seniors in Phoenix. Located in the Biltmore area, the property benefits from strong demand from the immediate neighborhood along with demographic tailwinds, which are driving senior housing’s noteworthy, ongoing recovery following the strain caused by the pandemic.

The property consists of 78 assisted living suites across studio, one-bedroom, and two-bedroom floorplans as well as 30 memory care suites. Amenities at the property include a fitness center, resident game room, outdoor seating area with firepit, and spacious resident dining room.

The community was purchased in a special situation transaction via auction facilitated through a federal receivership. The venture is planning a targeted capital expenditure program at the asset to facilitate a series of enhancements aimed at improving resident experience, optimizing occupancy and bolstering value. MorningStar Senior Living, which currently manages the facility, will be retained as the property manager under the new ownership.

“Purchased below replacement cost, this high-quality asset offers substantial upside potential,” says Jon Mirkin, managing director with Sabal Investment Holdings. “Logical upgrades will ideally position its units and services for Phoenix seniors looking for quality living and care.”

Planned improvements include a cosmetic refresh to common areas including the main entrance lobby, dining room, theater, and other amenity spaces along with the reconfiguration of smaller assisted living units to meet local demand for larger and more functional living spaces. Exterior painting and landscaping improvements are also planned.

“This acquisition highlights our strategy of partnering with premier owner/operators in high-quality, newer vintage senior housing communities,” says Frank Small, founder and managing principal of 12 North Capital. “We remain bullish on the future prospects of senior housing given the positive secular trends, near-term capital market dislocation and dynamic investment landscape. We are excited to complete our first investment with Sabal, who has been an incredible partner in supporting us and look forward to many more in the future.”

Adds Tal Seder, managing director of Sabal Investment Holdings, “We are increasing our focus on investment opportunities like this one within the assisted living sector as dynamics including limited new supply, occupancy surpassing pre-COVID levels, and the aging Baby Boomer cohort all converging and driving demand for quality senior housing.”

Aron Will, Vice Chairman of CBRE National Senior Housing, and Michael Cregan, Vice President of CBRE National Senior Housing arranged the financing.

About Sabal Investment Holdings

Sabal Investment Holdings (“Sabal”) is a fully integrated real estate investment manager serving institutional investors across the U.S. Sabal Investment Holdings is headquartered in Irvine, California. A fully-integrated firm, Sabal Investment Holdings identifies, underwrites, structures and closes commercial real estate investment opportunities throughout the capital stack. The firm currently manages over $1.4 billion in assets. Visit www.sabalinvestmentholdings.com.

About 12 North Capital LLC

12 North Capital (“12 North”) is a premier senior housing investment firm dedicated to creating high-quality, safe, comfortable, and supportive communities for aging populations. With the ability to invest across the acuity spectrum from active adult through and including assisted living / memory care communities, 12 North leverages its extensive expertise and longstanding relationships to deliver superior returns for investors while prioritizing the well-being of residents. Visit www.12-north.com.

About MorningStar Senior Living

An integrated developer, owner, and operator of premier retirement communities, MorningStar’s portfolio encompasses over 40 properties under operation or development representing 5,000+ units under management or in development in 11 states in the Midwest and Western United States. Offering independent living, assisted living and memory care, MorningStar is privileged to elevate life for those who taught the rest of us how to live. For more information, visit www.MorningStarSeniorLiving.com.