Harrison Street and Harbert Management Corporation Form JV for Pasadena, Potomac Senior Housing

Harrison Street Asset Management and Harbert Management Corporation's South Bay investment team announced Nov. 2 a joint venture to develop two senior housing communities in Pasadena, California, and Potomac, Maryland, with construction financing provided by PNC Bank, N.A.

The projects, The Palmer in Pasadena and The Belle Mare in Potomac, are designed to add 80 and 94 units, respectively, to their communities. The announcement was made from Birmingham, Alabama, by Harrison Street Asset Management and Harbert Management Corporation (HMC) through its South Bay team, known as Harbert South Bay.

Harrison Street and Harbert Form Development Partnership

The venture is a development partnership rather than a property sale. Harrison Street is the capital partner, while Harbert South Bay is the sponsor. Harbert South Bay partners exclusively with Momentum Senior Living on all projects in its portfolio, including the Pasadena and Potomac communities.

The two new projects add a combined 174 units to Harbert South Bay's development pipeline. The firm said that, together with projects already under construction in Irvine and Dublin, California, and in Dallas, they bring its active construction portfolio to more than 800 units.

The Palmer and The Belle Mare are positioned as luxury, Class A senior housing communities. Harbert South Bay said it has focused on luxury communities with high-end amenities in affluent, high-demand markets with limited new supply over the past 10 years.

Executives Cite Supply Constraints and Demographics

"Pasadena and Potomac will be benchmark assets in our portfolio of luxury, Class A communities," said Patrick McGonigle, CEO of Harbert South Bay. "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."

Rob Korslin, Co-Head of North America Transactions at Harrison Street, pointed to demographic trends. "Demand for high-quality senior housing continues to outpace supply across the country, a trend expected to accelerate as the US population aged 80 and older reaches record levels," Korslin said. "We believe Pasadena and Potomac are two communities with growing needs and by partnering with experienced developers like Harbert South Bay, Harrison Street is helping to address this shortage while investing in a sector supported by compelling demographic trends and strong operating fundamentals."

PNC Provides Construction Financing

PNC Bank, N.A. is providing construction financing for The Palmer and The Belle Mare. The projects are new developments, with construction beginning.

Pipeline and Platform Scale

Harbert South Bay is planning additional senior housing construction starts in Walnut Creek, San Francisco and San Diego (Mission Valley), California, as well as Newton, Massachusetts. Harbert South Bay and Harrison Street are actively pursuing additional development opportunities to expand their senior housing portfolio.

Since inception, Harbert South Bay has developed more than 11,000 senior housing units across 84 projects, representing $1.8 billion in cost, which works out to a historical average of roughly $164,000 per unit across the portfolio.

Harrison Street describes itself as the largest private owner of senior housing properties in the U.S., having invested $16 billion across 46,000 units since its inception. The firm manages $110 billion in assets across real estate, infrastructure and credit strategies and is headquartered in Chicago, Toronto and London, with more than 600 employees. Harbert Management Corporation, formed in 1993, is a privately owned alternative asset manager with approximately $7.9 billion in regulatory assets under management as of Sept. 30, 2026. Its strategies include senior housing, European and U.S. real estate, power, growth capital and credit solutions.

Market Context

The partnership pairs Harrison Street's institutional senior housing capital with Harbert South Bay's development platform and its exclusive relationship with Momentum Senior Living. The announcement ties the projects to the expected growth of the U.S. population aged 80 and older and to markets characterized by limited new supply.