Harrison Street Asset Management is saying goodbye to a senior housing portfolio in Long Island, New York. An unnamed buyer has swooped in to buy five properties from the investment management firm for more than $600 million.
The Class A portfolio includes amenities such as fitness centers, swimming pools, movie theaters, libraries and lifestyle programs. The assets were constructed under a partnership with B2K Development between 2016 and 2022.
The deal aligns with Harrison's disposition strategy, which involves developing properties and creating value for them. The Chicago-based firm noted in a statement that the five-asset portfolio specifically "delivered strong operating performance and are supported by the long-term growth of aging populations in attractive markets." Since Harrison's 2005 founding, the company has arranged the sale of 160 senior housing properties, at a gross value of $5.6 billion.
“This transaction exemplifies Harrison Street’s ability to produce value by targeting strategic developments, creating portfolios at scale that deliver operational excellence, and executing strategic sales at opportune moments in time,” said Ben Mohns, head of Harrison's North America asset management.
“As an early mover in the sector, we have helped shape the evolution of high-quality senior living communities, and this portfolio sale underscores growing investor demand for demographically driven, resilient alternative real estate sectors such as senior housing.”
As the population continues to age — the more senior housing appears to boom. The trend is leading to record national occupancy in the sector, as the second quarter enjoyed a 0.8 percent increase from the previous three months to 88.1 percent, a recent report from the National Investment Center for Seniors Housing & Care found. At the same time, the data also shows that supply is at a two-decade low, with rents rising by a modest 0.1 percent.
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