Harrison Street Buys Los Gatos Senior Living Complex

A recently opened senior living community in Los Gatos has come under new ownership.

Harrison Street Real Estate, an affiliate of Chicago-based Harrison Street Asset Management, bought the Ivy Park at Los Gatos complex for $54 million, the Mercury News reported. The seller was a joint venture between two Bay Area real estate firms, Vacaville-based Chronograph Properties and San Jose-based Swenson, which developed the property that opened in May of this year.

The 114-unit community at 400 Blossom Hill Road in Los Gatos sold for well above its assessed value from January of this year of $38.4 million. Harrison Street Real Estate has been a repeat investor in senior living communities, investing approximately $14.6 billion in senior housing assets for a total of 43,000 combined units in the two decades since its founding.

The sale of the resort-style Ivy Park complex was part of a six-property portfolio transaction from Harrison Street, which partnered with senior living company Oakmont Senior Living and general contractor Blue Mountain Enterprises to acquire the properties. Harrison Street purchased the properties through HSRE BME Blossom Hill Road LLC, a joint-venture entity created with Blue Mountain Enterprises.

The 669-unit purchase includes five operational senior communities in California and one empty development site scheduled for completion with new residences in 2027, Commercial Observer reported. The other properties are in Santa Rosa, Bakersfield, Vallejo and Fairfield, per the Silicon Valley Business Journal. The overall sale price was more than $200 million for the six-property portfolio.

The sale comes as new construction of multifamily properties in the Bay Area slows, with ground-up and redevelopment projects becoming fewer and farther between. In Oakland, for example, Ellis Partners is seeking to turn a former American National Red Cross building into a seven-story, 197-unit senior housing facility.

Meanwhile, near Los Gatos in San Jose, Shashi Group is seeking to convert the Aloft San Jose Cupertino hotel into a senior residential care facility. That plan calls for an 80-unit complex offering assisted living and memory care.

Harrison Street previously bought the 94-room Oakmont at Silver Creek senior living facility in San Jose in 2023 for $50.8 million.

— Chris Malone Méndez