With seven new management agreements in place, Diversified Healthcare Trust has transitioned 91% of Five Star Senior Living’s smaller senior living communities as the Newton, MA-based operator shifts its focus to larger communities, the real estate investment trust said Tuesday.
The Newton, MA-based REIT plans to move the remainder of the original 108 Five Star communities to be transitioned by the end of the year.
Diversified added five assisted living communities in Wisconsin, totaling 300 units, to its existing management agreement with Cedarhurst Senior Living. In addition, the REIT entered into a new management agreement with IntegraCare for two assisted living communities in Pennsylvania, totaling 182 units.
In April, Five Star announced a strategic plan to pull out of the 108 communities so it could focus on larger independent living, assisted living and memory care communities as well as stand-alone active adult and independent living communities. The 108 communities have a total of approximately 7,500 units, Five Star said at the time. The company also announced plans to exit the skilled nursing business completely.
