Investment firm Harrison Street has acquired five senior living communities from Brightview Senior Living.
The acquisition, announced Sept. 9, comprises 743 units spread out across Massachusetts, Maryland, New Jersey, Pennsylvania and Virginia. Harrison Street is acquiring the communities as part of a joint-venture agreement with Baltimore-based Brightview Senior Living.
“We are very excited to be partnering with Harrison Street on this recap portfolio as they share our commitment to an associate first culture and a first-class resident experience,” Doug Dollenberg Jr., president and CEO of Brightview Senior Living, told Senior Housing News.
Brightview currently manages the communities and will continue to do so after the sale. The deal increases the two companies’ shared portfolio to 26 communities totaling over 3,600 units. That total also includes a community currently under development in Fairfax, Virginia.
According to a press release, the communities are located in affluent and smaller markets with high barriers to entry. The properties currently carry a 94% occupancy rate on average.
The strategy of building up communities and recapitalizing from investors is part of Brightview’s longterm strategy, according to Dollenberg. Each community is developed by an in-house team using private investment funds and loans from banking partners, and fund investors are provided with returns and an exit from the investment by recapitalizing after approximately 8-10 years.
“We believe that these properties will be well-insulated from new competition for years to come,” Mike Gordon, global chief investment officer at Harrison Street, said in the press release. “We believe by partnering with experienced operators like Brightview, we will continue to deliver high-quality assets in supply-constrained markets, meeting the growing demand for premier senior housing while generating great outcomes for our investors.”
In 2019, almost a dozen Brightview communities changed hands to Harrison Street in a similar manner. Brightview also is spinning up a new fund with a target of more than $200 million to develop its next wave of new communities and push through development hurdles. The company has also funded its other growth over the years through a series of private funds. Dollenberg told Senior Housing News plans are in place for a steady growth plan of developing two to four new communities per year, and the company has a pipeline of over a dozen new sites which are either identified, under contract, or under
construction.
“As market conditions are starting to shift towards an environment favorable for recap transactions, we are very pleased to do our first post-pandemic deal with Harrison Street, who has been a strong long-term strategic partner of Brightview,” Dollenberg said in the release.
The terms of the deal were not disclosed.
Companies featured in this article:
