By Kate Snyder
As part of a deal that was announced in 2021, a 94-unit assisted living center for senior citizens in San Jose was purchased by a Chicago real estate investment company, according to a report from The Mercury News. The center, Oakmont of Silver Creek, traded hands for $50.8 million, or approximately $540,425 per unit. The buyer was an entity affiliated with Harrison Street Real Estate Capital. The previous owner was listed in public records as an entity affiliated with Gallaher Companies.
The property is located at 3544 San Felipe Road and is a retirement community that is also dedicated to providing assisted living and memory care, according to the property’s website. Features include indoor and outdoor restaurant-style dining, a library, movie theater, fitness center, activity room and bistro. Apartments range from studio suites to two-bedrooms.
In 2021, Harrison Street announced that it had agreed to purchase 24 senior housing assets and sell 14 medical office properties across eight states in a deal that involved multiple sellers and counterparties for a total transaction value of approximately $1.6 billion.
“The senior housing sector remained resilient throughout the pandemic and is poised for growth,” Michael Gordon, global chief investment officer at Harrison Street, said in 2021. “Specifically, the assets we are acquiring are managed by a leading operator in Oakmont and located in attractive markets backed by solid demographics, high barriers to entry and historically high occupancy rates. Further, we remain committed to the medical office sector and continue to evaluate and acquire attractive properties that meet our strict investment criteria.”
The deal included a portfolio of 24 Class A senior housing properties focused on assisted living and memory care consisting of 2,195 units across California and Nevada. Twelve properties were acquired from Healthpeak Properties, Inc., and 12 properties were owned by Gallaher Companies. All of the properties were at the time operated by Oakmont Management Group.
The former Healthpeak properties are located in Montecito, Escondido, Roseville, Alameda, Fair Oaks, Concord, Chino Hills, Whittier, Santa Clarita, San Jose, Valencia and Huntington Beach. The former Gallaher properties are located in Camarillo, Oxnard, Stockton, Torrance, Sacramento, Novato, San Jose, Fullerton, Simi Valley and Roseville as well as Las Vegas.
Harrison Street is headquartered in Chicago with offices in London and Toronto, according to information from the company. The firm has more than 190 employees and approximately $33 billion in assets under management.