Brookdale Senior Living will pay $135 million to buy 18 senior living communities from Diversified Healthcare Trust, the Newton, MA-based real-estate investment trust has announced.
The transaction is expected to close in the fourth quarter.
Brookdale, based in Brentwood, TN, currently leases the communities from DHC and has leased and operated them since February 2003, DHC said. The REIT said it intends to use the proceeds from the transaction to pay down $941 million in senior secured notes due January 2026.
“This transaction is a further implementation of our ongoing initiatives to optimize our portfolio and enhance our liquidity,” DHC President and CEO Chris Bilotto said in a statement. “The sale opportunistically monetizes this NNN [triple-net leased] portfolio at a premium valuation of over $150,000 per unit. The proceeds from the transaction reflect an in-place cap rate on the lease’s annualized income of 7.3% and will allow us to reduce our leverage.” DHC said the price per unit is $154,000.
The 18 communities include a total of 876 units, are located across 10 states and mainly serve assisted living residents as well as memory care residents. They were built in the late 1990s. They include:
- Brookdale Camino del Sol, Sun City West, AZ, a 46-unit memory care community built in 1998;
- Brookdale Littleton, Littleton, CO, a 50-unit assisted living community built in 1998;
- Brookdale Cape Coral, Cape Coral, FL, a 42-unit assisted living community built in 1998;
- Brookdale South Bend, South Bend, IN. a 42-unit assisted living community built in 1998;
- Brookdale Midland, Midland, MI, a 37-unit assisted living and memory care community built in in 1998;
- Brookdale Monroe, Monroe, MI, a 38-unit assisted living and memory care community built in in 1998;
- Brookdale Portage, Portage, MI, a 93-unit assisted living community built in 1998;
- Brookdale Bay City, Bay City, MI, a 38-unit assisted living and memory care community built in 1998;
- Brookdale Saginaw, Saginaw, MI, a 38-unit assisted living and memory care community built in 1998;
- Brookdale Eagan, Eagan, MN, a 46-unit memory care community built in 1998;
- Brookdale West St. Paul, West St. Paul, MN, a 38-unit assisted living and memory care community built in 1998;
- Brookdale Chapel Hill, Chapel Hill, NC, a 92-unit assisted living community built in 1996;
- Brookdale Murrysville, Murrysville, PA, a 34-unit memory care community built in 1998;
- Brookdale Penn Hills, Penn Hills, PA, a 24-unit personal care home built in 1997;
- Brookdale Ebenezer Road, Rock Hill, SC, a 41-unit assisted living community built in 1999;
- Brookdale Columbia, a 41-unit assisted living community built in 1998;
- Brookdale Sandy Springs, Maryville, TN, a 92-unit assisted living and memory care community built in 1998; and
- Brookdale Goodlettsville, Goodlettsville, TN, a 44-unit assisted living community built in 1998.
