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Brookdale Senior Living Expands Ownership Strategy
15 Oct
Summary
- Brookdale acquired 30 senior living communities from Welltower for $290M.
- The deal will save Brookdale nearly $18M in rent payments annually.
- Other firms like BDT & MSD Partners and American Healthcare REIT are investing heavily.
Brookdale Senior Living is executing a strategy to increase its ownership of senior living real estate. The company recently purchased 30 communities from healthcare REIT Welltower for $290 million. This acquisition includes 1,152 assisted living and memory care units and is expected to save Brookdale approximately $18 million in rent payments next year.
In addition to the purchase, Brookdale extended its lease with Welltower for 39 other communities, securing a four-year extension. This provides flexibility with a fair-market-value purchase option. Brookdale also finalized a $157 million acquisition of 735 units across 17 communities.
These transactions are anticipated to boost Brookdale's profitability and cash flow, as ownership allows the company to benefit from future operational growth while reducing long-term lease obligations. Brookdale currently operates 529 communities nationwide and aims for regional density.
The senior housing market is attracting substantial investment. BDT & MSD Partners acquired a majority stake in Sunrise Senior Living for over $1 billion. Additionally, American Healthcare REIT plans to spend more than $1.5 billion on 16 senior housing facilities.
