StepStone Real Estate, the real estate arm of StepStone Group, and Blue Moon Capital Partners announced they have completed a $250 million continuation vehicle to operate a portfolio of five Class A, stabilized senior housing communities originally developed or redeveloped by Blue Moon.
The recapitalization is structured as a continuation vehicle, a deal format that allows long-term ownership of existing assets under a new vehicle while providing flexibility for investors to either maintain exposure or seek liquidity, depending on the transaction terms.
StepStone Real Estate and Blue Moon said the vehicle is intended to do more than hold the existing properties. The firms said they also plan to use it as a platform to acquire additional high-quality senior housing communities, signaling a strategy to scale the portfolio beyond the initial five assets.
The announcement also highlighted a continued emphasis on senior housing as a core theme within StepStone Real Estate’s broader real estate investment efforts, noting its experience investing alongside established owner-operators across multiple geographies.
For Blue Moon, the transaction extends ownership of what it described as a fully stabilized portfolio, while aligning with a capital partner it characterized as deeply experienced in the senior housing sector. Blue Moon also identified operational priorities, including incorporating technology into operations and advancing workforce culture, as part of the strategy to maintain the community’s competitive positioning.
Blue Moon said it expects to continue working with its long-standing operating partners on the portfolio, naming Senior Lifestyle, LCB Senior Living, and Ascent Living Communities, and said it intends to keep expanding its senior housing footprint with those partners.
KEY QUOTES:
“We have been focused on building our senior housing exposure with strong owner/operators like Blue Moon across the US and Europe. We’re excited to partner with Blue Moon on owning, improving, and growing their senior housing portfolio.”
John Waters, Partner And Head Of Investments, StepStone Real Estate
“SRE is the ideal partner for Blue Moon because they are deeply experienced senior housing investors and are aligned with Blue Moon on key initiatives such as incorporating technology into our operations and driving a culture of workforce advancement. Together we will continue to invest in high quality communities to maintain each asset’s position as a market leader and to provide care solutions for our aging population,”
Susan Barlow, Managing Partner And Chief Operating Officer, Blue Moon Capital Partners
“We are delighted to continue to own this fully stabilized portfolio of high-quality senior housing assets with SRE and our long-standing operating partners. We look forward to continuing to grow Blue Moon’s footprint with these operating partners: Senior Lifestyle, LCB Senior Living and Ascent Living Communities.”
Kathryn Sweeney, Managing Partner And Chief Investment Officer, Blue Moon Capital Partners
