Harrison Street Acquires Senior Living Portfolio for $380 Million

Chicago real estate fund-management firm Harrison Street has announced it has closed a deal to acquire a Long Island, N.Y.-based senior housing portfolio for approximately $380 million.

The portfolio, which includes seven properties focused primarily in assisted living with roughly 20% memory care units, was acquired by the Harrison Street Core Property Fund, the firm’s core open ended vehicle, with a combination of equity and the assumption of existing debt from Freddie Mac, the company stated.

The private equity firm announced in May 2012 it would be buying back the Bristal portfolio from a Canadian-Australian partnership in a joint venture with Engel Burman, the properties’ developer, who made a significant equity investment in the venture.


The two parties bought five of the properties from Canadian REIT Chartwell Seniors Housing and ING Real Estate Australia Pty for $290 million, and a sixth property that had been owned by ING. Engel Burman also recently opened the Bristal portfolio’s seventh community, which was approaching stabilization as of last May.

“We are excited to not only be able to acquire such a premier quality, stable portfolio in high barrier to entry markets, but to also form a joint venture with an outstanding organization like Engel Burman,” said Christopher Merrill, CEO and President of Harrison Street.

The seven properties comprise 1,047 beds in total with monthly rents of $4,200 for assisted living units and $5,500 for memory care units, according to the firm.


“This acquisition safeguards our local market share and strategically situates our company for future regional growth utilizing the platform we created in the late 1990s,” said Engel Burman President Jan Burman. “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.”

Grandbridge’s Seniors Housing team closed a $194 million Freddie Mac loan assumption for Harrison Street for the five senior living communities formerly owned by Chartwell and ING Real Estate Australia.

Written by Elizabeth Ecker

Companies featured in this article: