Chicago equity firm invests $38 million in Benton County senior living
Harrison Street Real Estate Capital, a real estate equity firm based in Chicago, has acquired two senior living developments in Benton County for a combined $38 million.
The assets, both licensed Assisted Living II facilities, are Mt. Carmel Community developments in Rogers (2200 W. Laurel Ave.) and Bentonville (1843 S.W. Regional Airport Blvd.). They opened in 2015 and 2018, respectively.
Mt. Carmel Community of Benton, led by founder Jimmy Elrod, was the seller in both deals.
Synovus Bank provided financing.
The two properties combined have 208 beds, with a mixture of assisted living apartments, memory care units and cottage living for the more independent senior. The Rogers development was 70% occupied at the time of the sale, and the Bentonville location at 21%.
The footprint of each location is about 19 acres, with several undeveloped acres available to expand. Each property is scheduled to start another phase within the next three to nine months. Combined, the two sites were most recently valued at $22.11 million by Benton County appraisers.
Harrison Street was founded in 2005 by Chris Merrill and brothers Mike and Chris Galvin, whose father co-founded electronics company Motorola.
The company recently sold 75% of its business to Colliers International, which will pay Harrison Street $450 million for the majority stake, with an additional $100 million due in 2022 based on the company achieving certain performance targets. Merrill is still the CEO.