Chicago-based Harrison Street announced Monday that it has bolstered its interest in Brightview Senior Living with the acquisition of five Brightview properties. Brightview will continue to manage them.
According to Harrison Street, the transaction “reinforces the partnership’s commitment to deliver premier senior housing to the growing pools of demand in strategic, high-barrier-to-entry micro-markets throughout the Northeast.”
Brightview Senior Living, founded in 1999, builds, owns and operates 45 communities in Connecticut, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, Rhode Island and Virginia. The five properties acquired by Harrison Street offer independent living, assisted living and memory care.
“As market conditions are starting to shift towards an environment favorable for recap transactions, we are very pleased to do our first post pandemic deal with Harrison Street, who has been a strong long-term strategic partner of Brightview,” Brightview President and CEO Doug Dollenberg Jr. said in a press release.
Harrison Street has invested more than $14.1 billion in senior housing since it launched in 2005. The investment firm says it currently ranks as one of the top five owners of senior housing in the United States.
Brightview and Harrison Street have been partners for more than 10 years. Upon the close of this latest deal, Harrison Street and Brightview’s shared portfolio will consist of 26 properties, including a development in Fairfax, VA, that is under construction.
“This strategic acquisition exemplifies Harrison Street’s commitment to identifying and investing in key opportunities in the senior living sector. We believe by partnering with experienced operators like Brightview, we will continue to deliver high-quality assets in supply-constrained markets, meeting the growing demand for premier senior housing while generating great outcomes for our investors,” said Mike Gordon, global chief investment officer at Harrison Street.
“These communities are situated in affluent micro-markets characterized by strong demographics and high barriers-to-entry that require extensive headwinds and approvals for new development, thus, we believe that these properties will be well-insulated from new competition for years to come,” Gordon added.
The properties currently have an average occupancy rate of 94%, according to Harrison Street.
