Chicago-based private equity firm Harrison Street Real Estate Capital, LLC and development company The Engel Burman Group have agreed to purchase five senior living communities for $290 million from a Canadian-Australian joint venture partnership.
Canadian REIT Chartwell Seniors Housing (TSX:CHS.UN) and ING Real Estate Australia Pty are selling the five-property Bristal-branded portfolio, all located in New York, with a total of 768 assisted living suites.
The Bristal Assisted Living brand was originally founded by Engel Burman in 1999; the group built, managed, and owned the five communities (plus a sixth owned by ING that Engel Burman and Harrison Street are also purchasing) until 2007.
The price for the five Chartwell/ING communities would include about $199.6 million of mortgage debt that will be assumed by the purchasers. The buyers will pay the rest of the purchase price in cash, and the deal is expected to close in the fourth quarter.
“This strategically situates our company for future regional growth utilizing the platform we created in the late 1990s,” said Engel Burman President Jan Burman in a statement. “Owning these assets once again while aligning ourselves with a strong institutional partner who shares our vision for growth ensures that The Bristal will remain the benchmark for excellence in assisted living.”
Engel Burman recently opened a seventh Bristal assisted living community in East Northport, currently in lease-up phase and approaching stabilization; the property will also be a part of the Harrison Street/Engel Burman joint venture. The real estate development company has another three communities under construction in New York and New Jersey, and controls a few more parcels of land in various stages of development that are expected to break ground within the next couple of years.
Written by Alyssa Gerace