Welltower Buys San Jose Senior Housing for $100 Million
One of the country’s largest real estate companies just purchased a senior apartment complex in San Jose for nearly $100 million.
Welltower, the world’s largest healthcare real estate investment trust, acquired the Novelle Senior Living apartments at 3355 Almaden Expressway in a $99.6 million all-cash deal, the Mercury News reported.
Columbia Pacific Advisors and SRM Development completed the 195-unit property in San Jose’s Willow Glen neighborhood last year and sold it to a Welltower affiliate.
Columbia Pacific and SRM bought the property in 2019 for $16.5 million and secured a $78.5 million construction loan in 2022, bringing their investment in the development to $95 million. The $99.6 million sale price was 4.8 percent higher than the cost of the development site and the associated construction loan.
Another senior living complex in San Jose traded hands last month. American Healthcare REIT acquired a 200-unit property about a mile down the street at 4610 Almaden Expressway in a $102.8 million all-cash deal. Alliance Residential sold the property, known as Avella at Almaden, which opened in 2020.
Both transactions fetched similar per-unit prices at nearly the same number of residences. The Novelle deal fetched $510,800 per unit, while the Avella sale worked out to $514,000 per unit.
Other senior living properties in Silicon Valley have traded hands over the past year as investors increasingly see the value in such facilities as the so-called silver tsunami washes across the country.
In the spring, Rocklin-based Kalesta Healthcare Group acquired developments in Sunnyvale and Menlo Park for nearly $24.3 million. Vacaville-based Calson Management sold Crescent Oaks in Sunnyvale for about $11.8 million and Silver Oaks in Menlo Park for roughly $12.3 million. Last fall, Harrison Street Real Estate purchased the Ivy Park at Los Gatos community in Los Gatos from Vacaville-based Chronograph Properties and San Jose-based Swenson for $54 million.
— Chris Malone Méndez
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