Real estate investment management company Berkshire Group, located in Boston, Mass., has partnered with Newport Beach, Calif.-based, Clearwater Senior Living (CSL) to develop and acquire senior housing communities in the western part of the United States. Through this partnership, the company expects to generate over $500 million in gross asset value, with future expansion as the market warrants it.
“Berkshire is excited to take this next step and partner with Clearwater Senior Living to expand our investment footprint in senior housing,” Jason Grossman, managing director of Berkshire Group Venture Investments, said in a press release. “The new venture with CSL will allow us to complement our existing East Cost senior housing platform with development opportunities in primary and secondary markets as well as other West Coast markets.”
Berkshire manages approximately $6.3 billion in real estate assets on behalf of its institution clients worldwide and has been in the multifamily investment industry for more than 50 years. While relatively new to the senior housing space, the new partnership is not Berkshire’s first foray into real estate sector. In 2015, the company closed a $161.5 million venture investment vehicle with LCB Senior Living that targets senior housing in the Northeast market.
The joint venture between Berkshire and Clearwater is interested in opportunities with third-party institutional investors and will own, operate and develop a full range of senior housing communities that include all levels of care from independent living to memory care.
“The venture with Berkshire represents a long-term strategic alliance for Clearwater Senior Living to continue our team’s passion to own, develop and operate innovative senior housing communities,” Tony Ferrero, CEO of CSL, said in the press release. “Berkshire exemplifies the same principles, values and drive for excellence that we share at CSL. It is through this shared foundation that we strive to create distinctive environments that enhance the lives of our associates, our residents and their families.”
Clearwater was founded in 2011 by Ferrero to provide ownership, operation and development of senior living communities across the country. He previously held a leadership position with Kisco Senior Living.
Both Berkshire as well as Clearwater are fairly new to the senior housing landscape, especially when it comes to funding from a private equity investment company. On the development side, the market has seen new entrants of late with players like San Diego-based Douglas Wilson Companies and Phoenix-based Alliance Residential Company making major commitments to the sector.
Representatives from Berkshire Group and Clearwater Senior Living had not returned requests for comment as of press time.
Written by Alana Stramowski