Morgan Stanley Investment Management has expanded its senior housing holdings with the $93.1 million acquisition of two Class A communities in Central Florida. The portfolio includes 300 independent living, assisted living and memory care units across the Orlando and Tampa metropolitan areas, strengthening the firm’s position in the U.S. senior living market.
Key takeaways
- Morgan Stanley funds acquired two Florida senior housing communities for a combined $93.1 million.
- The portfolio includes 300 units in Lake Mary and Clearwater.
- AgeWell and Berkshire Residential Investments were the respective sellers.
- AgeWell will continue operating both communities.
Two communities make up the portfolio
The transaction includes the 193-unit Sonata Lake Mary in Lake Mary and the 106-unit The Preserve at Dunedin in Clearwater. Both properties provide a mix of independent living, assisted living and memory care, allowing them to serve residents with varying levels of support.
The communities are positioned within two of Florida’s major metropolitan areas. Lake Mary is part of the Orlando market, while Clearwater is located in the Tampa metropolitan area, giving the portfolio exposure to established and growing Central Florida population centers.
Deal values reflect separate property sales
According to transaction details reported by Commercial Search, AgeWell sold Sonata Lake Mary for $60 million. Berkshire Residential Investments sold The Preserve at Dunedin for $31.1 million.
Together, the two sales produced the reported $93.1 million portfolio purchase price. The separate transactions brought two operating communities under the ownership of investment funds managed by Morgan Stanley Real Estate Investing, or MSREI.
AgeWell will remain the operator
Although ownership has changed, AgeWell will continue operating both communities. Maintaining the existing operator can provide continuity for residents and staff while the new ownership structure takes effect.
The arrangement also allows Morgan Stanley to acquire established properties with operating platforms already in place rather than developing new senior housing communities from the ground up.
Morgan Stanley continues senior housing expansion
Funds managed by MSREI have been investing in senior housing since 2022. With the Florida acquisition, those funds now maintain ownership interests in 13 senior living communities across the United States.
The purchase adds scale to Morgan Stanley’s senior housing strategy and expands its presence in a sector serving residents who need a range of housing and care options. The Florida portfolio’s combination of independent living, assisted living and memory care aligns with demand for communities offering multiple levels of service in one setting.