Harrison Street Expands Senior Housing Portfolio
- Dec 12, 2019
Harrison Street is adding to its healthcare real estate assets with the acquisition of an 11-property portfolio of senior housing properties managed by Brightview Senior Living. The portfolio totals 1,322 units in Maryland, New Jersey and Massachusetts and expands Harrison Street’s five-year partnership with Brightview.
The properties are all stabilized and have maintained an average occupancy of 92 percent for the past three years. They offer independent living, assisted living and memory care options and include top-of-the-line facilities in primarily residential areas with access to retail, entertainment and office spaces.
For Harrison Street, the acquisition is consistent with its broader healthcare real estate strategy. Michael Gordon, a Harrison Street senior managing director, said in a prepared statement the portfolio purchase highlights the strong demand for high-quality assisted living and memory care service assets. He noted the assets are located in affluent regions backed by strong demographics with high barriers to entry that require extensive approvals for new development.
The partnership with Brightview dates back to at least August 2014 when Harrison Street acquired a senior housing portfolio of 11 properties with 1,600 units that were located in metro Baltimore; metro Boston; Philadelphia; Staunton, Va.; and Newport, R.I. The seller was a joint venture of The Shelter Group and its Brightview Senior Living affiliate. Brightview had developed and managed nine of those communities. More recently, in July, CBRE arranged a $35.7 million refinancing package on behalf of a joint venture between Harrison Street and Brightview for two communities—the Staunton, Va., asset, and another in Woburn, Mass.
Gordon said Harrison Street was pleased to continue and further its partnership with Brightview, citing its successful track record of building, owning and operating senior living communities. Jeffrey Hettleman, partner & CFO at Brightview, said in prepared remarks the company is also happy to expand their partnership with more Brightview communities.
The communities in the new portfolio deal are: Brightview Perry Hall, Nottingham, Md.; Brightview Rolling Hills, Catonsville, Md.; Brightview Towson, Towson, Md.; Brightview White Marsh, Baltimore; Brightview South River, Edgewater, Md.; Brightview Greentree, Marlton, N.J.; Brightview Mount Laurel, Mount Laurel, N.J.; Brightview Woodbury Lake, Deptford, N.J.; Brightview Concord River, Billerica, Mass.; Brightview North Andover, North Andover, Mass.; and Brightview Fallsgrove in Rockville, Md.
Harrison Street closed 48 transactions within the healthcare sector so far this year representing 71 assets in 22 states for a total cost of approximately $4.9 billion. The deals were made across four individual funds and with 13 operating partners and involved acquisitions, development and repositioning of properties in the senior housing, medical office, behavioral health, life science and hospital infrastructure segments.
In August, the firm completed the final close of Harrison Street Real Estate Partners VII LP, surpassing the original goal of $950 million and reaching its hard cap of $13 billion. With an additional $302.5 million raised in co-investment vehicles, Fund VII closed with a total of $1.6 billion in capital commitments, good for about $4 billion in buying power. Among the deals the fund invested in was the May acquisition of the 677,000-square-foot Osborn Triangle Portfolio, a state-of-the art, multi-tenant office and laboratory complex in Cambridge, Mass. Acting in a joint venture with Bullfinch Cos., Harrison Street purchased the asset from a subsidiary of Massachusetts Institute of Technology for $1.1 billion.