Clearwater, Berkshire Launch $1B Senior Housing Fund

The partners are targeting ground-up development as well as acquisitions.

Clearwater at Rancharrah in Glendora, Calif. Image courtesy of Clearwater Living and Berkshire Realty Ventures

Clearwater Living and Berkshire Realty Ventures have teamed up again to create a portfolio of senior living assets worth at least $1 billion.

The two companies will be working together on a capital fund that will develop and strategically acquire senior living assets. Christopher Hilbert, chief investment officer for Clearwater, told Multi-Housing News that the fund will focus on the western U.S., specifically in areas with strong market demographics and barriers to entry.

The fund will also look for additional joint venture partnerships with institutional investors that are focusing on ground-up development and acquisition of senior living assets—specifically, senior housing projects that are age-restricted, independent living, assisted living and memory support.

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According to Hilbert, the current development pipeline for the fund includes properties in Windsor, Newport Beach and Glendora, Calif. The fund will target high-quality communities with generous unit sizes and adequate common area space for resident programming.

Steady senior housing pipeline

Clearwater and Berkshire’s latest partnership marks the second time the companies have worked together on a capital fund for senior housing. The two companies first partnered in 2016, when Berkshire made an entity-level investment for Clearwater’s development projects and acquisitions.

Berkshire joined several other investors who also backed Clearwater’s plans, including Harrison Street Partners, Goldman Sachs and Virtus. Hilbert told MHN that the funding for Clearwater led to four communities being built with another currently under development in Glendora, Calif.: Clearwater at Sonoma Hills, Clearwater at Rancharrah, Clearwater at Riverpark and Clearwater at North Tustin.

On its own, Berkshire has also invested in the Florida region, acquiring an 82-unit senior housing community in Clearwater, Fla., in a $23 million deal that closed this July.

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