May 17, 2019
SAN FRANCISCO, CA–In a transaction that closed May 17, 1001 Van Ness has been sold by Oryx Partners to a joint venture among Related Companies and Atria Senior Living (the “Related|Atria JV”).
The sale comes on the heels of the April 4 unanimous approval by the San Francisco Planning Commission to transform the vacant building site into 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.
“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,” said JC Wallace, Principal and Co-Founder of Oryx Partners. “We are so pleased to hand off the site knowing that hundreds of San Francisco seniors will find a home there.”
The Related|Atria JV, as announced in the Fall of 2018, plans to bring modern senior housing of the highest-quality to urban settings. This site acquisition is the first step in that bigger vision.
“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 for the project. “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.”
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.
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.
Related Companies is the most prominent privately-owned real estate firm in the United States.