Hines enters senior housing market

The Houston developer-cum-fund manager is partnering with a REIT to build a senior housing building in the middle of a Manhattan office neighborhood.

Hines is moving into senior housing with the purchase of a Manhattan development site.

The Houston-based developer-cum-fund manager said Tuesday that it is partnering with health care real estate investment trust Welltower to build a 15-story senior living center with ground-floor retail.

The firms plan to demolish the two existing buildings on the site, at 139 East 56th Street, to construct the new senior living property, which will house seniors with assisted living and memory care service needs, according to Tuesday’s announcement. Terms of the deal were not disclosed.

The development site is currently home to the chain restaurant TGI Friday’s, and is surrounded by office buildings. Blocks away sits Billionaires’ Row, Manhattan’s ultra-luxury cluster of condominium towers. The island’s senior population has been “vastly underserved” in residential building, the firms said.

“Welltower's proven track record and vision in health care infrastructure combined with our local development expertise will complement one another well,” said Tommy Craig, Hines’ senior managing director, in Tuesday’s statement.

Hines has $89.1 billion in assets under management, according to the Tuesday announcement.

Last month, the firm said it is growing its European presence by expanding into new geographies and real estate sectors. Hines said it is actively seeking new development and acquisition opportunities in what it deems 'recovering' European markets including: Ireland, Spain, Italy, Greece, Portugal and the Netherlands. The firm will continue to put capital to work in markets such as UK, Germany and France, where it already has a presence.