Two suburban Chicago senior living properties have changed hands in a combined $161 million deal, giving Inland a bigger foothold in a market where occupancy is climbing and new construction is lagging. The purchases put communities in Batavia and Deer Park under the same buyer while Dial Senior Living remains the operator.
Harrison Street Sells Two Operating Communities
Inland paid $70.2 million for The Landings in Batavia and $90.3 million for the Deer Park property, according to The Real Deal. Harrison Street was the seller in both transactions, and Customers Bank provided about $47 million in mortgage financing for the Batavia purchase.
Senior Housing Demand Is Tightening
The timing is favorable for owners of established communities. The National Investment Center for Seniors Housing & Care said national occupancy reached 89.5% in the first quarter, while Chicago reached 89.9% and units under construction fell to roughly 16,400 across the 31 primary markets.
Rob Korslin, who co-heads Harrison Street's North American transactions, described senior housing as the firm's highest-conviction investment sector and said supply-and-demand dynamics are as favorable as they have been in two decades, the report said.
A Seller Still Putting Capital To Work
The sale does not signal Harrison Street is leaving senior housing. In a July announcement, the firm said it had closed or was working on investments in 10 new senior housing development projects over 18 months, representing about 1,600 units and more than $1.2 billion in total project costs, according to Harrison Street.
Inland's Senior Housing Appetite Is Growing
For Inland, the purchase expands a senior housing strategy that has already reached other Chicago suburbs. In March, the company bought the 156-unit Clarendale of Mokena for $72 million, adding another sizable community to its Illinois portfolio, as previously reported by The Real Deal.
The latest deal also follows a wave of major senior housing trades around the region. A $151 million sale of the 149-unit Belmont Village community in Lincoln Park earlier this year showed that investor interest is not limited to suburban properties, as Hoodline reported.
The immediate story is less about a new use for the Batavia and Deer Park properties than about who owns them. As new construction slows and older-adult demand rises, operating senior communities are increasingly becoming the scarce, high-value assets investors want to control.
