Related Companies announced this week it is getting into the senior housing business with a reported $3 billion pipeline of projects.
The developer has partners with Atria Senior Living to develop, own and operate modern, urban communities catering to seniors looking to live in major cities.
The JV announced it’s first project will be transforming the former KRON TV Building in San Francisco the city’s first modern senior living communities in well over a decade
The site was purchased fom Oryx Partners, a local company that bought it for $26 million in 2014 and secured approvalfrom the city to convert the vacant property to senior housing.
No information was released on the sale price, but as part of the deal, Oryx, Related and Atria said they will be making a contribution to Openhouse, a non-profit that supports LGBT Seniors, to support the completion of its senior center for low-income LGBTQ seniors at 75 Laguna. Oryx’s JC Wallace will also be joining the Openhouse Board of Directors.
In addition, the group has agreed to make an additional contribution to Tenderloin Neighborhood Development Corporation (TNDC) aimed at supporting homeless senior housing and wellness initiatives.
“There continues to be a severe shortage of urban senior-housing options throughout the country,” said Bryan Cho, executive vice president of Related Companies.
“Related Companies has a long history and a deep commitment to investment in San Francisco and the Bay Area, and we look forward to meeting that need while delivering a great asset for the city and the neighborhood.”
The project will break ground in late 2019 with plans to complete the project by the end of 2021. Atria will manage the community.
Welltower Inc. is the long-term capital partner for the Related|Atria JV at 1001 Van Ness. Shankh Mitra, Welltower’s EVP and Chief Investment Officer, added “The Related|Atria JV represents a unique and distinct opportunity that will appeal to sophisticated, urban seniors and is consistent with Welltower’s strategy of providing the next generation of infrastructure for an aging population to live well.”