Investment management firm Harrison Street has sold a portfolio of five senior housing properties in Oregon and Montana valued at $193.5 million to a longtime partner, The Springs Living, a senior housing owner/operator.
The properties were held across several of Harrison Street’s U.S. Opportunity Funds and related co-investment vehicles. They have a total of 622 independent living, assisted living and memory care units located in Eugene, Ore.; Medford, Ore.; Butte, Mont.; and Billings, Mont. As of December 2021, the properties had an average occupancy rate of 93 percent. Among the properties in the portfolio sale are The Springs at Greer Gardens in Eugene and The Springs at Veranda Park in Medford.
Ben Mohns, senior managing director & head of North American asset management at Harrison Street, said in a prepared statement the transaction fits Harrison Street’s longstanding strategy of acquiring or developing individual assets, executing on defined business plans and exiting through strategic portfolio sales. He noted the dispositions reflect Harrison Street’s strong senior housing track record and ability to create value for investors. Harrison Street is one of the top five owners of senior housing in the United States. The firm has invested more than $12 billion in senior living communities with more than 38,000 independent living, assisted living and memory care units.
Mohns described The Springs Living as a well-respected senior housing operator. Harrison Street and The Springs Living have a longstanding relationship dating back to 2011. Since that initial partnership, the firms have acquired 14 properties representing more than 2,000 units. In January, CBRE National Senior Housing arranged the refinancing of The Springs at Lake Oswego, a 216-unit senior living community in Lake Oswego, Ore., for joint venture partners Harrison Street and The Springs Living. The amount of the financing was not disclosed by CBRE National Senior Housing but it was described as a non-recourse, four-year, floating-rate loan with three years of interest only payments.
The Springs Living also worked with Harrison Street and The Center for Active Design to develop the Fitwel senior living scorecard, which supports better health and wellness outcomes at senior living facilities. The Springs Living recently became the first company to earn a Fitwel global health certification in senior housing for occupant health and wellness.
More Harrison Street Deals
Late last month, Harrison Street Real Estate Capital and joint venture partners The Waters Senior Living and North Rock Real Estate sold The Waters on Mayowood, a 175-unit independent living, assisted living and memory care community in Rochester, Minn., to a private buyer. The price was $67.4 million, according to public records.
In August, Harrison Street Real Estate Capital teamed up with Oppidan to develop The Hacienda Mission San Luis Rey, a 213-unit senior living community in Oceanside, Calif., slated for delivery next year. Once completed, Watermark Retirement Communities will handle operations at the property.