Real estate investment firm Harrison Street is expanding its relationship with Brightview Senior Living.
The Chicago-based company announced Wednesday it acquired an 11-community portfolio managed by Brightview. The portfolio comprises 1,322 units in independent living, assisted living and memory care properties across Maryland, New Jersey and Massachusetts. All of the communities are stabilized, with an average occupancy of 92% through the past three years.
The portfolio previously was owned by PGIM Real Estate, the firm announced in a press release. The sale was executed by SHP IV, which was PGIM’s fourth closed-end fund focused on senior housing. The fund closed in 2012 with nearly $570 million in commitments from institutional investors. PGIM Real Estate is the global investment management business of Prudential Financial (NYSE: PRU).
Neither Harrison Street nor PGIM disclosed the acquisition price.
Chad Lavender and Ryan Maconachy, vice chairmen of global commercial real estate advisory firm Newmark Knight Frank, arranged the sale, while Sarah Anderson, managing director for Newmark Knight Frank, financed it.
Earlier this year, Harrison Street raised $1.6 billion in equity for its latest fund, with a goal of devoting about 30% to 40% to senior housing investments.
The Brightview portfolio fits into Harrison Street’s overall health care real estate strategy, and helps meet a growing demand for assisted living and memory care services, according to Michael Gordon, a senior managing director at Harrison Street.
“These properties are located in affluent regions backed by strong demographics as well as high barriers to entry that require extensive approvals for development,” Gordon stated in a press release. “Brightview has a successful track record of building, owning and operating senior living communities and we are pleased to further our partnership with them as we continue to invest in top-tier senior housing assets.”
Brightview is a well-established operator based in Baltimore, with about 40 communities across the U.S. The company took the top spot among large companies in this year’s Best Workplaces in Aging Services list. It has also endeavoured to upgrade its dementia-focused offerings this year with a new program called Bright Minds.
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Harrison Street’s Brightview acquisition is the latest in a flurry of transactions completed this year. In 2019, Harrison Street acquired, developed or repositioned 71 health care assets in 22 states, represent a total cost of approximately $4.9 billion across four individual funds. Those transactions involved senior housing, medical office, behavioral health, life science and hospital properties with 13 different operating partners.
Since its founding in 2005, Harrison Street has acquired and developed over $15 billion in health care real estate, with more than $7 billion in senior housing. In addition to Brightview, Harrison Street also works with other big-name operators such as Houston-based Belmont Village.
The Brightview communities that changed hands are:
- Brightview Perry Hall in Nottingham, Maryland
- Brightview Rolling Hills in Catonsville, Maryland
- Brightview Towson in Towson, Maryland
- Brightview White Marsh in Baltimore
- Brightview South River in Edgewater, Maryland
- Brightview Fallsgrove in Rockville, Maryland
- Brightview Greentree in Marlton, New Jersey
- Brightview Mount Laurel in Mount Laurel, New Jersey
- Brightview Woodbury Lake in Deptford, New Jersey
- Brightview Concord River in Billerica, Massachusetts
- Brightview North Andover in North Andover, Massachusetts