Bidding Wars Shape Senior Housing Market in San Diego
The value environment in the seniors housing market is strong and continues to improve, according to Aaron Rosenzweig, senior managing director at JLL.
He told GlobeSt.com that he expects the resilience in the seniors housing capital markets to continue for the foreseeable future due to the demographic demand drivers and the continued lack of new supply.
In certain instances, Rosenzweig said transactions are receiving multiple offers and multiple rounds of bidding.
One example is Harrison Street Asset Management's recent sale of Clearwater at Riverpark, a 136-unit independent living seniors community in Ventura County, to an S&P company. The deal was arranged by JLL Capital Markets.
"The purchase price in this transaction was very competitive, comparable to other recent Class A stabilized seniors housing sales," Rosenzweig said.
Built in 2018 within the master-planned Riverpark development, Clearwater at Riverpark delivers "exceptional" operating performance in a supply-constrained coastal market, according to a release.
The property is adjacent to The Collection at Riverpark, a retail and entertainment destination that is located just minutes from Oxnard State Beach. It offers residents a "resort-style" community with direct access to Highway 101.
The 153,297-square-foot community on 3.8 acres features residences averaging 809 square feet with full kitchens, in-unit washers and dryers and private patios. Amenities include multiple dining venues, a swimming pool, fitness center, theater, salon and spa, putting green and a dog park.
Rosenzweig was joined by JLL Senior Director Dan Baker on the deal.
Deed-Restricted Asset Sales Trending
Recent seniors housing transactions in the San Diego area reflect a market defined by scarce supply, strong demand for regulated income streams and competitive bidding for deed-restricted assets.
One other notable sale illustrates the current performance trends.
In East San Diego, Pacifica Companies acquired Chamoune Gardens, a 96-unit affordable senior community, for $12.6 million (about $131,250 per unit). The property was 95% occupied at closing, marking its first sale in more than two decades and underscoring investor interest in stable, rent-restricted senior housing amid a regional affordability squeeze.
Source: GlobeSt/ALM