Sagewood Gardens, a 162-unit senior living community in Hacienda Heights, has sold for $34.4 million.

Mogharebi Group’s Alex Mogharebi and Otto Ozen represented the seller, a private owner, and the buyer, a San Gabriel Valley-based private buyer.

The complex was built in 1988 and is composed of 21 residential buildings. It has a fitness center, resident lounge and activity center.

The Sagewood Gardens is a community for residents 55 and over.

“The driving force was the prime location in the heart of the San Gabriel Valley, as well as the unique unit mix which includes cottages, stable cash flow, strong long term growth in senior housing, and upside with a value-add program,” Ozen said in a statement.

Baby boomers are aging, which is driving up demand for senior housing. A CBRE Group Inc. survey found that 62% of investors were planning to add more senior housing to their portfolios due in part to strong returns.

Over the last five years, senior housing gave investors a 14% return on investment, compared with a 9.2% return on multifamily investments over the same period, according to CBRE.

Local developers, private equity firms, REITs and national companies are all looking at senior housing as a desirable asset class.

Commercial real estate reporter Hannah Madans can be reached at [email protected]. Follow her on Twitter @HannahMadans.