As part of Five Star Senior Living’s previously announced plan to exit the management of 108 smaller senior living communities as it focuses on larger communities, Diversified Healthcare Trust has entered into a new management agreement with Cedarhurst Senior Living for seven assisted living communities and one memory care community within its senior housing operating portfolio.
All eight properties are in Illinois. The portfolio includes 486 units.
With this transaction, Newton, MA-based Diversified has entered into new management agreements representing approximately 78% of its senior housing operating portfolio communities to be transitioned from Newton, MA-based Five Star. The real estate investment trust expects to transition the remainder of the Five Star properties by the end of the year.
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 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.
For DHC, Five Star said in April that it would continue to operate 144 senior living communities with a total of approximately 20,200 living units, including managing 120 senior living communities with approximately 17,900 living units.
