Morgan Stanley Real Estate Investing Acquires Eight-community Brightview Senior Living Portfolio

A portfolio of eight senior living communities originally developed by Brightview Senior Living has changed hands, with investment funds managed by Morgan Stanley Real Estate Investing as the buyer.

The portfolio of communities comprises a total of 1,186 units across the Providence, Rhode Island; Baltimore, Philadelphia and Boston metropolitan areas. Brightview, headquartered in Baltimore, will continue to manage the communities going forward. The operator currently manages 45 senior living communities in eight states along the East Coast.

Morgan Stanley Real Estate Investing acquired the eight communities from investment management firm Harrison Street. Through its investment management arm, Morgan Stanley (NYSE: MS) manages $53 billion of real estate assets on behalf of its clients across the globe.

With the sale, funds managed by Morgan Stanley Real Estate Investing have ownership interest in 30 senior living communities across the country, totaling around 3,000 independent living, assisted living and memory care units, the company’s head of U.S. investments, Will Milam, told Senior Housing News.

The demand ahead from older adults aged 70 to 85, coupled with Brightview’s experience operating senior living communities, “makes this an attractive investment for our investor clients” the company noted in its press release.

Morgan Stanley, through its managed funds, also has been “actively investing in senior housing since the sector was dislocated during the Covid-19 pandemic,” the company noted.

Brian Engle, executive vice president of operations for Brightview Senior Living, said the operator is “excited to partner with MSREI as we remain committed to being a great place to work for our associates and a great place to live for our residents.”

Brightview is no stranger to developing communities before handing them off to new owners while continuing to manage them. The company has fueled its development growth over the years through private fundraising, most recently through a more than $200 million fund.

Earlier this year, Brightview President and CEO Doug Dollenberg Jr. told SHN the operator has a “strong development pipeline that stretches through the next five-plus years.”

Earlier this year in September, Brightview sold five communities to Harrison Street in a similar arrangement. Almost a dozen Brightview communities also changed hands to Harrison Street in 2019.

JLL Capital Markets represented Harrison Street in the transaction is the sale of portfolio to funds managed by Morgan Stanley Real Estate Investing, according to a press release. The broker also secured the Freddie Mac acquisition financing for MSREI, the release states.

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