Harrison Street Takes Advantage of Senior Housing Market With $2B in Completed Sales
Harrison Street Asset Management continues to trim its senior housing holdings, as it cashes in on favorable market conditions.
In the past month alone, the Chicago-based firm has completed more than $800 million in dispositions across the asset class. The transactions spanned across nine properties and six states.
Also, when you factor Harrison's activity in the past year, its senior housing dispositions have totaled roughly $2 billion in volume. The deals included Class A full-continuum communities.
One of those specific dispositions involved a five-property portfolio in Long Island, New York. The company announced last August that it fetched more than $600 million for the portfolio.
The asset manager attributes the activity to strong investor demand for high-quality senior housing product, backed by favorable demographics and a population that continues to age. Also, part of Harrison's strategy is to monetize properties "following periods of strong rate growth and operating performance," according to a statement from the firm.
"Senior housing continues to be one of the most compelling opportunities in alternative real estate, driven by strong demographic tailwinds and growing investor demand for high-quality communities," Ben Mohns, global head of asset management of real estate at Harrison Street, said in a statement.
"We believe that these individual transactions demonstrate our ability to create liquidity and strategically position our portfolio to best take advantage of market trends."
It's unclear if Harrison plans to make any more sales in senior housing in the near future — but throughout its history, it has poured roughly $15.1 billion across 44,000 units in the sector. Total senior housing sales over its lifetime have reached $5.6 billion through 180 assets.
Overall, investor confidence appears to be building in senior housing. A recent report from BBG Real Estate Services revealed that cap rates are expected to compress more, with 76 percent of respondents noting this in a survey for lower-acuity property types in particular.
Source: GlobeSt/ALM