Clarion Partners has acquired a portfolio of 586 senior apartment units in California for $100 million, according to the New York-based real estate investment manager. The firm acquired the portfolio, which consists of three Class A senior housing communities, from Carlsbad, California-based senior housing owner Kisco Senior Living.
“With this acquisition, we are targeting one of the strongest segments of demand within the current real estate market – senior housing units suitable for the aging Baby Boomer population,” said Richard Pink, managing director at Clarion Partners. “We could check all the boxes in terms of quality and location.”
The first community, Buena Vida at Town Center in Rancho Santa Margarita, is a 115-unit complex. The second, Village on the Green in Rancho Cucamonga, is a 264-unit property. The third complex, Oak View at Sonoma Hills in Sonoma County, has 207 units. All three communities have occupancy rates above 95 percent.
Pink noted that Clarion intends the three properties to be a long-term investment. “These assets can offer stable consistent returns over time,” he said, adding that the firm is expecting an unlevered net IRR of 7.5 percent.
This acquisition represents just the latest transaction by Clarion, which has been active this summer. In August, PERE learned that the firm acquired a 2.8 million-square-foot portfolio of 13 industrial properties from Prologis for $118 million. Those properties are located in nine markets, including Atlanta, Cincinnati, Columbus, Dallas, Indianapolis, San Antonio, Phoenix, Salt Lake City and Tracy, California.