Bickford Senior Living, a Kansas City-based developer and operator of assisted living and memory care communities, and Harrison Street Real Estate Capital, a Chicago-based real estate private equity firm, have entered into a joint venture resulting in the immediate acquisition/recapitalization of six assisted living and memory care communities that Bickford currently manages for approximately $62 million.
According to a press release, these assets will serve as the foundation for what the partnership believes will become one of the preeminent portfolios of assisted living and memory care properties located in the Central Midwest. The partnership already has assembled a pipeline of future acquisition and development opportunities and could make total investments exceeding $200 million.
The initial investment was made on behalf of a new company created by the partners, of which both members invested in the assets. The majority of the equity came from Harrison Street Real Estate Partners III, LP, the third fund launched by Harrison Street, which focuses on investing in the education, healthcare and storage segments of the real estate market.
The properties acquired by the partnership include six Bickford Senior Living communities in the Chicago, Kansas City, Omaha and Des Moines metro areas. This portfolio consists of 342 private-pay rental units that generally cater to an affluent resident base that is in need of assisted living and memory care.
The partnership’s future business plan involves developing, acquiring, repositioning and operating assisted living and memory care properties with a regional emphasis in the Midwest. This strategy builds on Bickford’s existing 40+ community portfolio strategically located in Illinois, Indiana, Missouri, Kansas, Iowa and Nebraska. The partnership is currently evaluating opportunities to develop and acquire additional senior housing assets. The joint-venture’s business plan contemplates approximately $150 million in additional transactions during the next three years.
Bickford currently operates more than 2,000 assisted living and memory care units. Harrison Street’s real estate assets under management total approximately $2.7 billion, including a senior housing portfolio of more than 5,000 units.
