Harrison Street Expands California Seniors Community Footprint With Over $200M Buy
Harrison Street Asset Management has formed a joint venture with Oakmont Senior Living and Blue Mountain Enterprises to acquire and develop a six-property, Class A senior housing portfolio across California. The acquisition price was reported to be worth more than $200 million.
The portfolio comprises five operational senior living communities and one shovel-ready development, scheduled for completion in 2027, all located in high-barrier California markets.
The deal was worth more than $200 million, as reported by the Commercial Observer.
Mike Gordon, global chief investment officer of real estate at Harrison Street Asset Management, told GlobeSt.com, “This transaction is the by-product of our tireless pursuit of Blue Mountain’s high-quality, well-located senior housing communities and our desire to continue growing our portfolio with long-standing operating partner, Oakmont Senior Living."
“While an exercise in patience, it’s always gratifying when everything comes together – in this case, the cross-section of premier senior housing properties located in strategic micro-markets alongside a strong operating partner, all at an attractive cost basis."
The portfolio is concentrated in aging/affluent markets with high barriers and continues to experience increasing demand from the growing population aged 80 and above.
“With historically low supply growth,” Gordon said, “we’re seeing accelerating occupancy and rental rate growth.”
This acquisition brings Harrison's portfolio to 44 senior housing properties in California.
Gordon said Harrison Street expects to continue expanding its portfolio in select micro-markets in California, given future demand growth and high barriers that continue to suppress new construction.
This 669-unit portfolio features spacious layouts and premium amenities, including full-service hair salons, coffee and gelato bars, movie theaters, outdoor community areas and activity rooms.
Oakmont will manage and operate the communities. This acquisition builds upon Harrison Street’s existing long-term relationship with Oakmont, which comprises 24 assets and approximately 2,500 units across California and Nevada.
Source: GlobeSt/ALM