Harrison Street Secures $250M for Senior Housing Portfolio
The acquisition loan provides financing for a 1,118-unit portfolio that is part of a $1.2 billion deal.
1401 Civic Court in Concord, Calif. Image via Google Street View
Harrison Street Real Estate Capital has secured a multi-layered financing package for the acquisition of a 1,118-unit senior housing portfolio.
PGIM Real Estate provided a $250.4 million fixed-rate, cross-defaulted and cross-collateralized loan, public records show.
The 12 properties are spread across California and Nevada. The portfolio consists of assisted living and memory care communities located in the San Francisco, Los Angeles, Ventura, Sacramento, Riverside, San Diego, Stockton, and Las Vegas metro areas.
The seller was Gallaher Cos. Oakmont Management Group will continue to provide property management services.
Complex financing program
According to Harrison Street, the portfolio is part of a larger, 2,195-unit senior housing deal the company agreed to close earlier this month, involving both Gallaher Cos. and Healthpeak Properties Inc. The total price of the 24-property acquisition is estimated at $1.2 billion.
Greystone was involved in the financing strategy by providing debt funding for the purchase of 16 senior housing assets in California. The portfolio mortgage also involved Freddie Mac loan assumptions.
Trace Wilson, executive director at PGIM Real Estate, and Cary Tremper, head of Greystone’s Seniors Housing Capital Markets, worked alongside Harrison Street in securing the transaction.
Property specifics
The Nevada asset known as Oakmont of the Lakes is located at 3250 S. Fort Apache Road, in Las Vegas, while Oakmont of Fair Oaks at 8484 Madison Ave. in Fair Oaks, Oakmont of Concord at 1401 Civic Court in Concord, and Oakmont of Camarillo at 305 Davenport St. in Camarillo are among the California properties.
The communities feature various amenities including indoor and outdoor dining, libraries, movie theaters, swimming pools, salons and day spas, fruit orchards bocce courts and pet parks.
In February, Harrison Street acquired a 90-unit senior community in Watertown, Mass. The Boston-area community provides independent and assisted living, as well as memory care services.
