In a significant move, American Healthcare REIT has purchased eight senior housing communities for approximately $696 million. These properties, constructed between 2020 and 2022, are located along the Eastern Seaboard and comprise a total of 867 units.
With this transaction, the company’s total acquisitions for the year surpass $2 billion. Initially, the portfolio consisted of 10 properties marketed as a single package.
Over a six-week period, AHR completed a series of transactions, securing the eight desired assets while enabling another institutional investor to sell the remaining two properties.
Public filings reveal that Berkshire was among the sellers. The acquired properties include Pennsylvania’s Fieldstone at Chester Springs and Residence at Bala Cynwyd.
Additional communities in the portfolio are Georgia’s Holbrook of Sugar Hill, Delaware’s Lodge at Historic Lewes, New Jersey’s Residence at Basking Ridge, Massachusetts’ Residence at Bedford, and Connecticut’s Residence at Westport.
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Concurrent with the deal, AHR has formed a new partnership with LCB Senior Living. Five of the acquired communities were developed and managed by LCB, while two others have been transitioned to LCB from a previous operator.
Holbrook Life, a senior living provider, developed and will continue managing the Holbrook of Sugar Hill community.
AHR’s Chief Investment Officer, Stefan Oh, emphasized that while capital can fund new construction, it cannot replicate entitled sites in prime locations like Westport, Basking Ridge, suburban Boston, or Philadelphia’s Main Line.
According to Oh, the portfolio’s long-term value stems from its unique real estate assets in supply-constrained markets. This acquisition follows AHR’s previous purchase of six senior housing communities from Kensington Senior Living for around $572 million.
Additionally, the company recently acquired two California-based senior housing properties with a total of 545 units for $197 million. Sold by Affinius Capital and Alliance Residential Co., this transaction marks one of Northern California’s largest senior housing portfolio sales in recent history.