Berengaria Development, the in-house real estate development and investment arm of Marcus Investments, together with BrightStar Senior Living (BSL), have identified an opportunity to develop a ground up, 41 unit assisted living and memory care building in Mason, OH. A 20-year absolute triple net lease has been executed between BrightStar Senior Living and Berengaria. The lease rate is set at an 8.85% yield on cost year one, with annual rent escalations of 1.50%. The anticipated hold period for this asset is 6 years from initial investment.

Berengaria has partnered with BSL, a senior living operator, over the past 18 months to develop new triple net senior living communities leased by BrightStar and assigned to a franchisee upon stabilization. This will be the second development executed by the BrightStar/Berengaria team with the first under construction in Fort Wayne, IN.

The joint venture relationship with BSL is unique in today’s senior living industry as we are signing an absolute triple net lease with BrightStar to operate the community thus allowing us not to enter into the operating business itself at any time during this deal. We see this triple net lease arrangement as an ideal way for us to participate in an operating real asset without taking the risk of an operating business.