Key Takeaways
- • CBRE Investment Management bought the 149-unit Belmont Village Senior Living Lincoln Park facility at 710 West Fullerton Parkway in Chicago from Houston-based Belmont Village Senior Living for $151 million, according to property records reported by The Real Deal.
- • The $151 million total comprises $121 million for the real estate and $30 million for equipment and associated items, per property tax records, implying roughly $812,000 per unit on the property price.
- • The deal is part of a run of Chicagoland senior housing transactions, including $217 million across four communities in late February and Blackstone's discounted sale of Lake Barrington Woods.
- • Demand fundamentals are supported by projected growth of more than 4 million Americans over age 75 by 2030 (U.S. Census Bureau data cited by PwC) and NIC expectations that average occupancy could top 90 percent in 2026.
Summary
New York-based CBRE Investment Management acquired the 149-unit Belmont Village Senior Living Lincoln Park at 710 West Fullerton Parkway from Houston-based senior housing firm Belmont Village Senior Living, in a transaction that closed the prior week, according to records cited by The Real Deal. The total consideration was $151 million, of which $121 million was allocated to the property itself and $30 million to equipment and other associated items, per property tax records. At $121 million, the real estate price works out to about $812,000 per unit. A representative of Belmont declined to comment, and CBRE Investment Management did not respond to requests for comment.
Belmont acquired the existing site in 2016 for $7.5 million, according to public records, demolished the building and developed the Lincoln Park community, which opened in 2019. Records show the developer obtained a $44 million loan from BMO in 2017; the company's total development investment is unclear. The facility targets the luxury end of senior living, and a 2019 Chicago Tribune report cited rents starting at $6,500 per month at opening.
The sale follows a series of Chicago-area senior housing trades. In late February, four Chicagoland communities changed hands in deals totaling $217 million, including Inland Real Estate Group's $72 million purchase of the 156-unit Clarendale of Mokena from LCS Senior Living, and Town Lake's $65 million acquisition of the 198-unit Sheridan at Green Oaks from Senior Living Corporation. Annenberg Investments-led buyers acquired a 296-unit Lakeview property from Ventas for $30 million. Not every trade favored sellers: Blackstone sold Lake Barrington Woods to Sabra Health Care REIT for $50 million in February, a roughly 30 percent discount to the $73 million it paid in 2017. Skokie-based Cascade Capital Group also sold two Grove-branded post-hospital rehabilitation facilities, The Grove at Evanston for $16.8 million and The Grove at The Lake in Zion for $16.1 million.
CBRE's Chicago purchase comes as the firm has pursued senior housing more broadly, including a roughly $405 million investment in Dutch senior housing announced in a press release. Demand drivers remain strong: according to U.S. Census Bureau data compiled in a PwC report, the population over age 75 is expected to rise by more than 4 million by 2030. The National Investment Center for Seniors Housing & Care expects limited new supply and steady demand to push average occupancy above 90 percent this year, potentially the highest level in the 20 years NIC has tracked the data, per PwC.
Belmont acquired the existing site in 2016 for $7.5 million, according to public records, demolished the building and developed the Lincoln Park community, which opened in 2019. Records show the developer obtained a $44 million loan from BMO in 2017; the company's total development investment is unclear. The facility targets the luxury end of senior living, and a 2019 Chicago Tribune report cited rents starting at $6,500 per month at opening.
The sale follows a series of Chicago-area senior housing trades. In late February, four Chicagoland communities changed hands in deals totaling $217 million, including Inland Real Estate Group's $72 million purchase of the 156-unit Clarendale of Mokena from LCS Senior Living, and Town Lake's $65 million acquisition of the 198-unit Sheridan at Green Oaks from Senior Living Corporation. Annenberg Investments-led buyers acquired a 296-unit Lakeview property from Ventas for $30 million. Not every trade favored sellers: Blackstone sold Lake Barrington Woods to Sabra Health Care REIT for $50 million in February, a roughly 30 percent discount to the $73 million it paid in 2017. Skokie-based Cascade Capital Group also sold two Grove-branded post-hospital rehabilitation facilities, The Grove at Evanston for $16.8 million and The Grove at The Lake in Zion for $16.1 million.
CBRE's Chicago purchase comes as the firm has pursued senior housing more broadly, including a roughly $405 million investment in Dutch senior housing announced in a press release. Demand drivers remain strong: according to U.S. Census Bureau data compiled in a PwC report, the population over age 75 is expected to rise by more than 4 million by 2030. The National Investment Center for Seniors Housing & Care expects limited new supply and steady demand to push average occupancy above 90 percent this year, potentially the highest level in the 20 years NIC has tracked the data, per PwC.
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