Harrison Street Real Estate Capital announced the acquisition of an eight property senior housing portfolio on behalf of Harrison Street Real Estate Partners III, LP (“Fund III”) for $125 million.
Referred to as the E-Quest Portfolio, it includes seven assets in and around Houston, TX, and one in Oklahoma City, OK.
In the aggregate, the properties have approximately 1,000 units and consist of Village on the Park, Houston; Village on the Park, Friendswood; Village on the Park, Oklahoma City; Carriage Inn, Conroe; Carriage Inn, Bryan; Carriage Inn, Lake Jackson; Carriage Inn, Huntsville; and Carriage Inn, Katy.
Bridgewood Property Company, will manage the portfolio, make an equity investment in the venture and will oversee the repositioning and redevelopment of the properties.
The portfolio currently caters to independent living residents, but once licensing is obtained, Harrison said it plans to reposition each of the assets by expanding their service mix to include assisted living and memory care as well.
“This transaction is emblematic of one of HSRE’s core strategies: to identify opportunities to unlock value by repositioning assets,” said Michael Gordon, Senior Vice President, Harrison Street. “We have sourced a portfolio of established, well-located Class-A assets that already benefit from a great reputation. We are excited to expand the scope of services that will be provided to our seniors, and generally enhance the assets, creating optimal living and working environments for staff and residents.”
The assets are currently encumbered by debt that is being assumed by the each asset.GE Healthcare is the lender on five of the properties, and FNMA/Greystone is the lender on the remaining three properties. The venture has restructured the terms of the financing, and all parties are advocating the repositioning of the communities.
The E-Quest Portfolio deal brings Harrison Street’s Fund III (a $595 million equity fund) to more than 50% invested since its launch in June of 2010. The Fund now has approximately $1 billion in gross real estate assets.
Written by John Yedinak