Harrison Street Real Estate Capital is set to acquire a portfolio of 24 senior housing communities for about $1.2B as it sells a medical office building portfolio of about half that size.
The senior living properties, which are mostly in California but also Nevada, are operated by Oakmont Senior Living. The portfolio totals 2,195 units that are mainly assisted living and memory care. The sellers are the Gallaher Cos. and Healthpeak Properties, which each own 12 properties in the portfolio.
The Healthpeak communities are on average 4 years old, with occupancies stabilized at 96% from 2016 to 2019, according to Harrison Street, adding that the Gallaher assets are recently built as well.
“The senior housing sector remained resilient throughout the pandemic and is poised for growth,” Harrison Street Global Chief Investment Officer Michael Gordon said in a statement. “Specifically, the assets we are acquiring are managed by a leading operator in Oakmont and located in attractive markets backed by solid demographics.”
Chicago-based Harrison Street in December raised $720M for a new fund that will focus at least partly on senior housing, Senior Housing News reports. The fund could raise as much as $2B. In February, Harrison Street bought 12 senior housing communities from Healthpeak for $312M.
Harrison Street also said it is selling a 14-property medical office portfolio totaling 833K SF for $371M. The properties, which are in Virginia, Illinois, Minnesota, New Jersey, Oregon, Texas and California, are held by Harrison Street’s core fund and U.S. opportunity funds.