PGIM, Kisco Acquire Bay-Area Senior Living Community
- Jun 05, 2017
A joint venture formed by PGIM Real Estate and Kisco Senior Living has acquired and will operate the Byron Park independent and assisted living community in Walnut Creek, Calif.
PGIM Real Estate, acting on behalf of institutional investors, is the real estate investment business of PGIM global investment management businesses of Prudential Financial Inc. Byron Park represents the firm’s third joint venture partnership with Kisco Senior Living. Kisco has owned and operated Byron Park for the past five years as part of a joint venture with an investment partner that sold its stake as part of the transaction.
Featuring 187 independent and assisted living residences, Byron Park stands on a 7.3-acre site 20 miles east of San Francisco. Kisco completed a $5 million renovation to the common areas and grounds last year.
Among the host of community amenities offered by Byron Park are an all-day restaurant-style dining center, heated swimming pool and spa, state-of-the-art wellness program, courtyard with multiple sitting areas, shaded patio, greenhouse and library.
The new joint venture will embark on an ambitious capital improvement plan to include renovations to existing apartments as well as the construction of a new two-story building on an adjoining 1.22-acre parcel. The new structure will feature 40 purpose-built assisted living and memory care residences, activity room, dining room, kitchen, wellness center and courtyard. Ground is expected to be broken for the fully entitled expansion building in second or third quarter 2018.
PGIM Real Estate and Kisco will continue the strategic relationship Byron Park has forged with the Rossmoor community, a nationally-recognized, age-55-and-older active senior adult community situated about one mile south of Byron Park. The partnership calls for co-sponsorship of events involving residents of both communities.
“We are pleased to expand our partnership with PGIM Real Estate, and we appreciate their commitment to continue making capital investments to enhance Byron Park, including the planned expansion building,” said Kisco founder and CEO Andy Kohlberg.
Noah Levy, head of the senior housing business of PGIM Real Estate, said the company is pleased to add to its portfolio this premier independent and assisted living community in one of the Bay Area’s most attractive areas.
“We look forward to building on our successful partnership track record with Kisco to provide a high-quality lifestyle for existing and prospective residents, and to provide our investors with a stable, income-producing asset with upside potential through continued unit enhancements and anticipated expansion plans.”
PGIM Real Estate has invested in the senior housing sector since 1998, and blazed trails by pioneering the dedicated senior housing investment strategy. PGIM Real Estate‘s Senior Housing Partners team has invested more than $3.9 billion in gross assets in the sector, an investment encompassing 150 properties and more than 17,000 units across the United States.