The Grand at Spokane, a 137-unit senior living community, has been purchased by New York City-based real estate investment adviser Clarion Partners LLC, according to a press release from the investment company.

The property was purchased for about $41 million, according to tax records on file with Spokane County.

Midvale, Utah-based Stellar Senior Living will continue operating the senior living community, formerly dubbed The Gallery at Spokane, located at 5401 S. Regal, in the Moran Prairie neighborhood. The property offers independent living, assisted living, and memory care services with residential units comprised of studio apartments and one- and two-bedroom units.

Kari Miller, executive director at The Grand, says she doesn't expect the acquisition to impact day-to-day operations for residents. 

“I think we’ll work well together,” Miller says.

Ray Henderson, president and CEO at Stellar Senior Living, says in the press release that both Clarion Partners and Stellar Senior Living look forward to "supporting residents, families, and team members while continuing to strengthen the community’s impact in Spokane.”

The $41 million purchase transaction reflects a growing interest from institutional investors in senior housing, a sector increasingly shaped by demographic and economic trends.

For instance, the number of Americans over 80 is expected to double by 2045, according to data from the U.S. Census Bureau. As the population ages, the demand for assisted living and memory care is expected to rise, according to a housing market report by Clarion Partners.

At the same time, older Americans are significantly wealthier than previous senior populations. The median net worth for individuals 75 and older was $334,700 as of 2022 — double the median net worth for the demographic in 1989, according to Clarion's housing report. This consistent growth in financial capacity is helping drive the demand to add higher-end senior housing developments, such as The Grand at Spokane, to investor portfolios.

The Grand at Spokane has studios starting at $4,700 per month, according to the company's website.

Julie Robinson, head of healthcare at Clarion Partners, says in a company press release that the acquisition reflects Clarion’s “conviction in high-quality health care real estate supported by strong operators and favorable long-term demographics.”

Unlike traditional real estate sectors, the demand for senior housing is driven by necessity, making it less sensitive to economic downturns. Residents typically require care regardless of broader market conditions, making the sector more resilient during periods of volatility. Still, supply has struggled to keep pace with demand.

Rising construction costs and higher interest rates have slowed new development nationwide, according to a study by Harvard University’s Joint Center for Housing Studies. Those constraints are relevant in midsized markets including the Spokane area and demonstrate that rising demand along with a limited supply has made existing properties such as The Grand at Spokane attractive to institutional investors.

“The Grand at Spokane exemplifies the type of asset we seek on behalf of our investors — new construction, located in a supply-constrained market, and operated by a best-in-class partner with a proven track record,” Robinson says.

Clarion Partners is currently expanding its health care real estate platform, which is valued around $3 billion, with about $600 million in additional transactions underway, according to a company press release in February.

Henderson, of Stellar Senior Living, says, “(Clarion’s) investment and commitment to the community align well with Stellar’s focus on delivering world-class senior living and strong operational performance."