Harrison Street Asset Management and Harbert Management Corporation’s South Bay investment team have formed a joint venture to develop two new senior housing communities, one in Pasadena, California and the other in Potomac, Maryland. The partnership is focused on adding age-restricted housing in what the firms describe as attractive, supply-constrained markets.
The Pasadena project, known as The Palmer, is planned to deliver 80 senior housing units. In Potomac, the joint venture will develop The Belle Mare, which is designed to add 94 units. Together, the two developments will introduce a combined 174 units of senior housing across the two communities.
These projects add to an existing construction pipeline for Harbert South Bay. Including The Palmer and The Belle Mare, the South Bay investment team now has more than 800 senior housing units actively under construction. The expanded pipeline highlights the platform’s ongoing commitment to new supply in the sector.
Construction financing for both communities is being provided by PNC Bank. While specific loan terms and project costs were not disclosed, the use of a single construction lender for both developments underscores the institutional nature of the capital stack supporting the joint venture.
“We are excited to begin construction on both projects, alongside a great partner in Harrison Street, as we continue to deliver distinctive communities designed to meet demand in attractive, supply-constrained markets,” said Patrick McGonigle, CEO of Harbert South Bay. His comments frame the developments as a response to ongoing demand for senior housing in both Pasadena and Potomac.
Harbert South Bay is partnering exclusively with Momentum Senior Living across its entire portfolio, including these new communities. Momentum Senior Living will be involved on all projects in the platform, reflecting a consistent approach to execution and operations across Harbert South Bay’s senior housing developments.
Harbert South Bay reports a long track record in the asset class, having developed more than 11,000 senior housing units across 84 projects, representing a cumulative development cost of $1.8 billion. This history positions the platform as a seasoned participant in new construction and repositioning within the senior housing space.
Harrison Street is described as the largest private owner of senior housing properties in the United States. Since its inception, the firm has invested $16 billion across 46,000 senior housing units. Its role in the joint venture with Harbert South Bay aligns with Harrison Street’s broader strategy of partnering on development and investment in specialized housing sectors.
The Palmer in Pasadena and The Belle Mare in Potomac extend both firms’ exposure to senior housing development, combining institutional equity, bank construction financing and an exclusive operating relationship with Momentum Senior Living under a single programmatic framework.
