Former KRON Building to be developed as modern senior living community
Related Companies and Atria Senior Living, in partnership with Welltower (NYSE:WELL) today announced the acquisition of 1001 Van Ness. The property was acquired from Oryx Partners. Related formed a joint venture with Atria Senior Living (the “Related|Atria JV”) in 2018 to develop, own and operate modern, urban communities catering to seniors looking to live in major cities.
The sale comes on the heels of the April 4th, 2019 unanimous approval by the San Francisco Planning Commission to convert the vacant building site to one of the city’s first modern senior living communities in well over a decade. The site is the former home of KRON-TV at the corner of Van Ness Avenue and O’Farrell Street, located just one block from the new Sutter California Pacific Van Ness Medical Center and along the Van Ness Bus Rapid Transit (BRT) line now under construction.
“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, a leading provider of high-quality senior living, will manage the community. Atria currently provides senior living services to over 4,500 Californians across its 43 communities in the state.
“We are thrilled to be in partnership with Related to build a project and a business serving San Francisco customers looking to live in a place that allows them to age well. Our aim is to create an option for seniors close to the cultural amenities that allow them to remain connected to the city they love. We look forward to providing additional details as the project moves forward, as well as announcing future locations of this partnership.” said John Moore, CEO of Atria Senior Living.
Welltower Inc. (NYSE: WELL) is the long-term capital partner for the Related|Atria JV at 1001 Van Ness. “With Welltower’s participation, we have added a best-in-class, long-term financing partner to the already world class combination of developer and operator represented by our JV with Atria.Welltower has been invaluable in helping us complete this acquisition, and we are looking forward to working with them throughout the development of the project,” said Cho.
Shankh Mitra, Welltower’s EVP and Chief Investment Officer, added “We are pleased to begin a relationship with Related and Atria on this highly-differentiated and much-needed offering in a marquee location. 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.”
JC Wallace, Principal and Co-Founder of Oryx Partners, states, “Delivering a fully-entitled site for new development in San Francisco is no easy feat, we had to be creative and persistent to overcome a variety of challenges in the development landscape. We are so pleased to hand off the site knowing that hundreds of San Francisco seniors will find a home there.”
As part of the initial development, Oryx, Related and Atria will be supporting the neighborhood by making a contribution to Openhouse in support of the completion of the city’s first senior center dedicated to serving primarily 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 innovative homeless senior housing and wellness initiatives.
Oryx Partners, LLC (“Oryx”) is a San Francisco based real estate investment and development company focused on value-added real estate opportunities. Oryx has executed multi-family repositioning and development projects and complex public-private partnership construction projects. Oryx seeks to achieve superior returns by investing in locations with limited supply and significant barriers to entry and also prides itself on its strong commitment to the communities and neighborhoods it invests in.
Atria Senior Living is an industry leading senior housing management services company operating more than 225 locations and 27,000 units in the United States and Canada. Focusing on high barrier to entry gateway cities, Atria has a leading presence in markets with strong wealth demographics, including 27 communities in metropolitan New York and 43 in California with concentrations in the Bay Area, Orange County and Western Los Angeles markets. Atria also has a significant presence in metropolitan areas of Toronto, Boston, Houston, Atlanta, Chicago and Philadelphia. Atria has built its reputation as a senior living industry leader with a focus on customer experience and quality. Its operating platform is one the most comprehensive in the industry and includes use of internally developed, proprietary, leading edge business support technology and advanced tools. Atria’s internal, self-auditing Quality Enhancement program measures beyond state regulatory standards ensuring quality service in all aspects of the resident experience and results in the highest quality relationships with regulators and other industry stakeholders. Atria employs more than 16,000 and operates a state-of-the-art Support Center in Louisville, Kentucky.
ABOUT RELATED COMPANIES:
Related Companies is the most prominent privately owned real estate firm in the United States. Formed 46 years ago, Related is a fully integrated, highly diversified industry leader with experience in virtually every aspect of development, acquisitions, management, finance, marketing and sales. Headquartered in New York City, Related has offices and major developments in Boston, Chicago, Los Angeles, San Francisco, South Florida, Washington D.C., Abu Dhabi, and London and boasts a team of over 4,000 professionals. The Company’s portfolio of over $50 billion in real estate assets owned or under development is made up of best-in-class mixed-use, residential, retail, office and affordable properties in premier high-barrier-to-entry markets. Related has developed preeminent mixed-use projects such as Time Warner Center in New York and Rosemary Square in West Palm Beach and the 28-acre Hudson Yards project on Manhattan’s West Side. Related has also created more than eight million square feet of office space for dozens of diverse business leaders across all industries including WarnerMedia, SAP, Sidewalk Labs, Wells Fargo, KKR, Google, Facebook, Converse and Tapestry. In California, Related has demonstrated a deep understanding of neighborhood placemaking with Grand Park and Frank Gehry’s The Grand, and has been one of the largest builders and preservationists of affordable housing. Related’s residential portfolio in California includes: dozens of affordable developments, The Paramount, The Avery, 1500 Mission and 1601 Mariposa in San Francisco, and The Century, Ocean Avenue South, Argyle House and The Emerson in Los Angeles.
For more information about Related, please visit: www.related.com.
Welltower Inc. (NYSE: WELL), an S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of health care infrastructure. The Company invests with leading seniors housing operators, post-acute providers and health systems to fund the real estate infrastructure needed to scale innovative care delivery models and improve people's wellness and overall health care experience. Welltower™, a real estate investment trust ("REIT"), owns interests in properties concentrated in major, high-growth markets in the United States, Canada and the United Kingdom, consisting of seniors housing and post-acute communities and outpatient medical properties. More information is available at welltower.com. We routinely post important information on our website at welltower.com in the "Investors" section, including corporate and investor presentations and financial information. We intend to use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included on our website under the heading "Investors." Accordingly, investors should monitor such portion of the company's website in addition to following our press releases, public conference calls and filings with the Securities and Exchange Commission. The information on our website is not incorporated by reference in this press release, and our web address is included as an inactive textual reference only.