American Healthcare REIT Acquires $94M Northern California Senior Housing Portfolio
A two-property senior housing portfolio totaling 545 units in San Jose and Roseville has been sold through a joint venture between Affinius Capital and Alliance Residential Company to American Healthcare REIT for $94.1 million.
The transaction facilitated by JLL represents one of the largest senior housing portfolio sales in Northern California in recent years and underscores the institutional investment community's appetite for modern, well-located assets developed by proven sponsors in demographically superior markets.
"Institutional capital has continued strong interest in acquiring great seniors housing assets in great markets given the demographic trends, the lack of new supply, and the resulting risk-adjusted returns," JLL senior managing director Aaron Rosenzweig told GlobeSt.com.
The portfolio comprises Sonrisa Senior Living, a 345-unit campus in Roseville spanning independent living (201 units), assisted living (120 units) and memory care (24 units) across two buildings delivered in 2021 and 2023, and The Watermark at Almaden, a 200-unit fully licensed independent living, assisted living and memory care community in San Jose that opened in 2021.
The communities feature outdoor pools, fitness centers, bocce ball and pickleball courts, full-service salons and spa, theaters and gourmet dining venues.
Sonrisa Senior Living is located at 1031 and 1041 Roseville Parkway in the Sacramento MSA. It has exceptional visibility and direct connectivity to Highway 65 and Interstate 80. The surrounding 15-mile primary market area boasts an average household income of $146,802 and a median home value of $643,994, with the age 75+ population projected to grow 20.9% by 2031.
The Watermark at Almaden is located at 4610 Almaden Expressway in San Jose, offering convenient access to upscale retail and grocery destinations. The surrounding 15-mile primary market area has an average household income of $239,555, a median home value of $1.55 million, and an average net worth of $3.13 million for households age 75+, with the qualified seniors population projected to grow 20.2% by 2031.
The JLL Senior Housing Capital Markets team representing the seller was led by Rosenzweig and colleagues, senior managing director Dan Baker, and analyst Sandis Seale.
Source: GlobeSt/ALM