Morgan Stanley Real Estate Investing (MSREI) completed the sale of its final 11 senior‑living communities in Maryland and Virginia to Foundry Commercial for $296 million, marking the full exit from the Spring Arbor Senior Living collection.
The Spring Arbor portfolio was originally acquired by MSREI and Foundry Commercial between 2022 and 2023. The 11 communities that were sold had maintained occupancy rates above 90% in recent years, underscoring the strong demand for senior‑living services in the Mid‑Atlantic region.
MSREI said the transaction allows it to streamline its real‑estate holdings toward higher‑yield, lower‑risk assets and to generate liquidity for future growth opportunities. The sale is part of a broader trend of institutional investors divesting from senior‑living assets to reallocate capital to more attractive sectors.
Will Millam, Head of Morgan Stanley Real Estate Investing U.S., said, "We are proud to have been part of the Spring Arbor Senior Living Collection and of the partnership with Foundry to strengthen operations, improve performance and deliver high-quality care to our residents over the last four years." He added, "This investment highlights MSREI's ability to identify opportunities during periods of market dislocation, partner with best‑in‑class operators and create value through disciplined operational execution."
Kevin Maddron, President of Healthcare Services for Foundry, noted, "We appreciate MSREI's partnership and working with them to provide quality care to our residents in a warm and inviting environment." He also said, "Furthermore, we look forward to building upon the reputation of these communities and the care our associates deliver with the new owner."
MSREI manages approximately $52 billion of gross real estate assets worldwide as of December 31 2024, and the sale of the Spring Arbor communities represents a significant milestone in its ongoing portfolio optimization strategy.
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