Foundry Commercial and AEW Acquire Allegro Senior Living Communities in New Jersey and Tampa

Foundry Commercial, alongside institutional capital partner AEW, has acquired two senior living communities in New Jersey and Florida, the firm announced Oct. 1. The properties are Allegro Harrington Park, a 173-unit community in Harrington Park, N.J., and Allegro Hyde Park, a 136-unit community in Tampa's Hyde Park neighborhood, together totaling 309 units.

Both communities were previously operated by Allegro Living, Foundry Commercial's wholly owned senior living management platform. Allegro Living will continue to operate both properties following the acquisitions.

Foundry Commercial and AEW Add Two Allegro Communities

Foundry Commercial said the acquisitions add two properties to its growing senior living portfolio as demand for high-quality senior living continues to grow. The firm described both communities as recognized among the highest-quality communities in their respective markets.

The Harrington Park community was sold by a joint venture of PGIM and Allegro Senior Living to a joint venture of AEW and Foundry Commercial. JLL arranged the sale and a five-year acquisition loan from a life-insurance company.

Allegro Harrington Park: Full-Continuum Community in Bergen County

Allegro Harrington Park, located at 200 Old Hook Road, was developed by Allegro and delivered in 2021. The community offers independent living, assisted living and memory care in Bergen County, approximately 20 miles from Manhattan. It sits on a 9.2-acre site and offers studio, one-bedroom and two-bedroom layouts. Allegro's community materials describe the property as opening in 2020.

The full continuum of care allows residents to move from independent living into assisted living or memory care without leaving the campus.

Allegro Hyde Park: Independent and Assisted Living in Tampa

Allegro Hyde Park, at 800 W. Azeele Street, includes independent living and assisted living residences in Tampa's Hyde Park neighborhood, which Foundry Commercial described as one of the city's most established and sought-after areas. The community, formerly known as The Bay at Hyde Park, offers one- and two-bedroom residences with an average unit size of approximately 714 square feet.

Allegro acquired the property from Bayshore Retirement Living for $74 million in 2023, or approximately $544,000 per unit.

Executives Cite Familiarity With the Assets

"These two exceptional communities represent the caliber of senior living opportunities we want to operate and pursue," said Kevin Maddron, President of Healthcare Services for Foundry Commercial. "Allegro's role in developing and operating these communities, with an uncompromising focus on quality and care, has made them both highly recognized in their markets. Because we know these properties, their operations, and their markets so well, we have tremendous confidence in what they offer today and their potential for the future."

"This investment reflects the type of opportunity we look for as we continue to grow our senior living portfolio," said Pryse Elam, Chief Investment Officer for Foundry Commercial. "These are exceptionally well-built, well-operated communities in attractive markets, with strong fundamentals and long-term potential. Having that level of conviction in the assets and their operations made this a compelling opportunity to deploy capital, and completing both transactions represents a meaningful investment in the continued growth of our senior living platform."

Operational Continuity Under Allegro Living

Allegro Living will continue to oversee day-to-day operations at both communities, providing continuity for residents, families and associates. The company draws on its experience operating senior living communities across multiple states.

The acquisitions come as senior housing continues to draw institutional capital. Long-term demand drivers include the aging U.S. population, which is expanding the pool of potential independent living, assisted living and memory care residents, and the difficulty of new development in many markets because of zoning, construction cost, labor and financing constraints. Higher interest rates have increased acquisition financing costs, making long-term debt from sources such as life insurance companies relevant to transactions of this type.

Sources

• Foundry Commercial: Foundry Commercial Expands Senior Living Portfolio with Acquisitions in N.J., Fla.