Joint Venture between Principal® and IRA Capital acquires Arizona senior living community for $44.5 million
(DES MOINES, Iowa ; Irvine, California) - Principal Asset Management® and IRA Capital announced today the acquisition of American Groves, an institutional Class-A senior living community in Gilbert, a suburb of Phoenix, Arizona, for $44.5 million.
The sale was facilitated by JLL Seniors Housing Capital Markets on behalf of the sellers, American Care Concepts and Reichmann International Realty Advisors, who developed the community in 2021.
American Groves is a two-story, 89-unit community, offering independent and assisted living options with onsite nurses and wellness programs, as well as extensive amenities, including a swimming pool, a theater, a Center for Healthy Living, yoga studio, fitness center, art center, sports lounge, dog park, and putting green.
The community is 100% occupied due to its high-end amenities, large apartments, and luxurious full kitchens. Designed with flexibility in mind, each unit has the ability to transition between independent and assisted living in response to changing resident needs, enabling the community to adapt to future demographic and operational trends.
Located at South 29th Place and Elliot Road in one of the fastest-growing areas of the Phoenix metropolitan region, Gilbert benefits from exceptional local demographics and a rapidly expanding 70+ population - key demand drivers for senior living investment.
Jim Halliwell, head of private real estate alternatives at Principal Asset Management, said: “American Groves exemplifies the type of high-quality, flexible senior living community that meets both the evolving needs of residents and the long-term objectives of our investors. Its adaptable unit design and prime location in a fast-growing, affluent suburb position it well for future performance. We are pleased to partner with IRA Capital on this acquisition as we continue to expand our footprint in the senior housing sector”.
Jay Gangwal, Managing Partner at IRA Capital, said: "This investment reinforces IRA Capital’s continued focus on healthcare real estate and the senior housing sector. As we execute on our strategic vision, we’re seeing meaningful growth across our portfolio—strengthening our position in key markets and advancing our long-term objective of building a nationally scaled senior housing platform. We remain confident in the long-term fundamentals of the senior housing industry and our commitment to investing in high-quality assets within growth-oriented regions.”
The transaction marks the latest investment by Principal in the growing US senior living market, which continues to benefit from favorable demographic tailwinds and increasing demand for high-quality, adaptable care environments.
About Principal Asset Management
With public and private market capabilities across all asset classes, Principal Asset Management and its investment specialists look at asset management through a different lens, creating solutions to help deliver client investment objectives. By applying local insights with global perspectives, Principal Asset Management identifies distinct and compelling investment opportunities for more than 1,100 institutional clients in over 80 markets.1 Principal Asset Management is the global investment solutions business for Principal Financial Group® (Nasdaq: PFG), managing $579.8 billion in assets, including $102.2 billion in real estate assets1 and recognized as a “Best Places to Work in Money Management”2 for 13 consecutive years.
Learn more at www.PrincipalAM.com.
About IRA Capital
Founded in 2010, IRA Capital is a Southern California-based private equity firm specializing in real estate investments. IRA primarily invests in commercial real estate assets throughout the United States, with an overweight concentration within the medical and healthcare sectors. To date, the firm has acquired over 11 million square feet of property across 28 states, with a total capitalization exceeding $3.7 billion. IRA partners with sovereign wealth funds, pension funds, institutions, and family offices to invest in high-quality assets.
To learn more, visit www.iracapital.com