Harrison Street forms JV with Bickford

The Chicago-based private equity real estate firm has teamed up with a Kansas City-based developer and operator of assisted-living and memory care communities to own and recapitalise six properties in the Midwest for $62 million.

Chicago-based Harrison Street Real Estate Capital has entered into a joint venture with Bickford Senior Living, a Kansas City-based developer and operator of assisted-living and memory care communities, to acquire and recapitalise six such properties for $62 million. Bickford currently manages the properties, all of which are located in the central Midwest.

According to an announcement from Harrison Street, the partnership already has assembled a pipeline of future acquisition and development opportunities and could make total investments exceeding $200 million. The properties include six Bickford Senior Living-managed communities in the Chicago, Kansas City, Omaha and Des Moines metro areas and consist of 342 units that generally cater to an affluent resident base in need of assisted living and memory care.

The initial investment was made on behalf of a new company created by Harrison Street and Bickford, both of which invested in the assets. The majority of the equity came from Harrison's latest fund, Harrison Street Real Estate Partners III, which focuses on investing in the education, healthcare and storage segments of the real estate market.

“Our partnership will focus on leveraging Bickford's existing platform to increase its footprint within its current markets and expand into new markets, with an emphasis on quality and controlled growth,” said Michael Gordon, senior vice president at Harrison Street, in a statement. 

The partnership's future business plan involves developing, acquiring, repositioning and operating assisted-living and memory care properties with a regional emphasis on the Midwest. This strategy builds on Bickford's existing portfolio of more than 40 properties in Illinois, Indiana, Missouri, Kansas, Iowa and Nebraska. 

Additionally, the joint venture currently is evaluating opportunities to develop and acquire additional senior housing assets that can benefit from Bickford's development and infrastructure. Its business plan contemplates roughly $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 $2.7 billion, including a senior housing portfolio of more than 5,000 units.