Marathon Asset Management announced that its Commercial Real Estate platform has originated a $235 million senior mortgage loan to an affiliate of Lone Star Funds to refinance an eleven-property, mixed-acuity senior housing portfolio.
The portfolio includes eleven purpose-built senior housing communities totaling 1,564 units. Ten of the properties are located across primary markets in Florida, with one asset situated in the Dallas-Fort Worth Metroplex. Lone Star originally acquired the communities in 2021 and has since implemented multiple strategic capital upgrades.
The portfolio is operated by Discovery Senior Living, which manages more than 46,000 senior housing units across the United States.
Marathon’s Commercial Real Estate team, led by Partner Joseph Griffin, worked closely with Lone Star to originate the financing. CBRE’s National Senior Housing team advised on the transaction, with Vice Chairman Aron Will, Senior Vice President Matthew Kuronen, and Vice President Michael Cregan arranging the loan.
Marathon said the transaction reflects its continued expansion in the senior housing sector, supported by demographic tailwinds and supply-demand dynamics. The firm emphasized its disciplined underwriting approach and focus on partnering with experienced sponsors in sectors underpinned by long-term structural demand.
Lone Star noted that the refinancing positions the portfolio to continue benefiting from prior capital investments, experienced management, and favorable demographic trends in senior housing markets.
Marathon Asset Management is a global asset manager specializing in private and public credit markets with more than $24 billion in assets under management. Founded in 1998 by Bruce Richards and Louis Hanover, the firm operates dedicated investment programs across asset-based lending, direct lending, opportunistic credit, and public credit strategies.
Lone Star is a London-headquartered investment firm advising funds that invest globally across private equity, credit, and real estate. Since launching its first fund in 1995, the firm has organized 25 private equity funds with aggregate capital commitments of approximately $95 billion.
KEY QUOTES
“Marathon continues to expand its presence within the senior housing sector given the compelling underlying fundamentals of the asset class driven by rapidly growing demand vs. the limited supply stock. Our partnership with Lone Star reflects our confidence that the assets and markets are well positioned to capitalize on the favorable demographic tailwinds within senior housing.”
Joseph Griffin, Partner And Head Of Commercial Real Estate, Marathon Asset Management
“This transaction highlights the strength and consistency of Marathon’s commercial real estate platform. We remain focused on disciplined underwriting and partnering with experienced sponsors in sectors supported by long-term structural demand.”
Bruce Richards, Chairman And CEO, Marathon Asset Management
“We were pleased to partner with Marathon and CBRE on the successful refinancing of this senior housing portfolio. Lone Star believes these assets will continue to benefit from capital investments, strong management and overall growing market demographics.”
Jerome Foulon, Global Head Of Commercial Real Estate, Lone Star Funds
