Highly Complex Transactions Comprising 40 Properties Across Eight States and Multiple Counterparties Highlights Harrison Street’s Sector Expertise, Deep Relationships, and Execution Ability
CHICAGO–(BUSINESS WIRE)–Harrison Street, one of the leading investment management firms exclusively focused on alternative real assets, today announced it has entered into a series of transactions under which Harrison Street agreed to purchase 24 senior housing assets and sell 14 medical office properties across eight states, multiples sellers and counterparties for a total transaction value of approximately $1.6 billion.
Christopher Merrill, Harrison Street’s Co-Founder, Chairman and Chief Executive Officer, said, “This highly complex series of transactions, which includes 40 properties, multiple closings, and numerous counterparties each with unique needs, reflects Harrison Street’s sector expertise, deep relationships, and execution ability. We are excited by the opportunities that exist across each of our core sectors and to bring Harrison Street’s substantial resources to bear to support vital sectors of the economy and to drive value for our investors and partners.”
Acquisition of Assisted Living and Memory Care Portfolio
Harrison Street has agreed to acquire a portfolio of 24 Class A senior housing properties focused on assisted living and memory care consisting of 2,195 units across California and Nevada for approximately $1.2 billion. Twelve properties were acquired from Healthpeak Properties, Inc. (“Healthpeak”) and are operated by Oakmont Management Group (“Oakmont”), and the remaining 12 properties are owned by Gallaher Companies (“Gallaher”), also operated by Oakmont, and many are either recently completed or currently under construction.
The Healthpeak stabilized portfolio has averaged 96% occupancy from 2016-2019. The properties, which are on average four years old, are located in premier senior housing markets supported by affluent and growing populations in Montecito, Escondido, Roseville, Alameda, Fair Oaks, Concord, Chino Hills, Whittier, Santa Clarita, San Jose, Valencia and Huntington Beach. The Gallaher properties are located in Camarillo, Oxnard, Stockton, Torrance, Sacramento, Novato, San Jose, Fullerton, Simi Valley, and Roseville, California as well as Las Vegas, Nevada.
Michael Gordon, Global Chief Investment Officer at Harrison Street, added, “The senior housing sector remained resilient throughout the pandemic and is poised for growth. Specifically, the assets we are acquiring are managed by a leading operator in Oakmont and located in attractive markets backed by solid demographics, high barriers to entry and historically high occupancy rates. Further, we remain committed to the medical office sector and continue to evaluate and acquire attractive properties that meet our strict investment criteria.”
Sale of Medical Office Properties
Additionally, Harrison Street has agreed to sell to Healthpeak a 14-property medical office portfolio with 833,000 square feet across Virginia, Illinois, Minnesota, New Jersey, Oregon, Texas, and California for approximately $371 million. The properties are held across Harrison Street’s Core Fund and U.S. Opportunity Funds.
Harrison Street is one of the most active real estate investors in healthcare, continuing to expand activity in senior housing, medical office, behavioral health, life sciences and hospital infrastructure sectors. Since inception, the firm has closed 552 assets within the healthcare sector for a total cost of approximately $19.5 billion.
About Harrison Street
Harrison Street is one of the leading investment management firms exclusively focused on alternative real assets. Since inception in 2005, the firm has created a series of differentiated investment solutions focused on demographic-driven, needs-based assets. The firm has invested across senior housing, student housing, healthcare delivery, life sciences and storage real estate as well as social and utility infrastructure. Headquartered in Chicago with offices in London and Toronto, the firm has more than 190-employees and approximately $33 billion in assets under management. Clients of the firm include a global institutional investor base domiciled in North America, Europe, Middle East, Asia and Latin America. Harrison Street has been awarded Best Places to Work by Pensions & Investments for the last seven consecutive years and was named 2020 Global Alternatives Investor of the Year by PERE. For more information, please visit www.harrisonst.com.
Nathaniel Garnick/Grace Cartwright
Gasthalter & Co.