Morgan Stanley Investment Management, acting through investment funds managed by Morgan Stanley Real Estate Investing (MSREI), has acquired a Class A seniors housing portfolio in Central Florida. The portfolio consists of two senior living communities that together offer independent living, assisted living and memory care units in the Orlando and Tampa metropolitan areas. According to the original report, the combined transaction value for the portfolio was $93.1 million.
The communities involved in the sale are Sonata Lake Mary in Lake Mary, Fla., and The Preserve at Dunedin in Clearwater, Fla. Sonata Lake Mary totals 193 units and The Preserve at Dunedin comprises 106 units, for a combined 300 units serving seniors across multiple care levels. Both assets are described as Class A properties, placing them at the higher end of the seniors housing quality spectrum within their respective markets.
Commercial Search was cited as reporting the individual transaction prices for each community. AgeWell sold Sonata Lake Mary in Lake Mary for $60 million. Berkshire Residential Investments sold The Preserve at Dunedin in Clearwater for $31.1 million. These separate transactions make up the overall portfolio acquisition by funds managed by MSREI. While ownership has changed as a result of the deal, AgeWell will continue to operate both communities going forward.
The continued involvement of AgeWell as operator provides continuity for residents across the portfolio and indicates that the transaction structure separates ownership and operations. The properties’ mix of independent living, assisted living and memory care allows them to serve a broad spectrum of senior housing needs in Central Florida, though no additional operational or performance details were disclosed in the source material.
Funds managed by Morgan Stanley Real Estate Investing have been active in the seniors housing sector since 2022. The report notes that MSREI-managed funds now hold ownership interests in 13 senior living communities across the United States. This latest acquisition of two Class A properties in Central Florida further expands that national seniors housing footprint, underscoring MSREI’s ongoing investment activity in the sector. No information was provided regarding financing terms, capitalization rates or planned capital improvements at the communities.
