Brookdale Senior Living has announced the acquisition of 41 communities currently managed under triple-net leases for $610 million. This purchase includes 2,789 units across three different portfolios of communities. The senior living operator, based in Brentwood, Tennessee, secured financing for this transaction with Deerfield Management leading the way.
Key players in this acquisition include landlords Welltower and Diversified Healthcare Trust. These communities boast occupancy rates above the company’s average and positive lease coverage, positioning Brookdale to take full advantage of the growing senior living market.
With this move, Brookdale now owns 66% of the consolidated units it manages and has addressed 83% of its debt maturities due by 2026. President and CEO Cindy Baier highlighted the benefits of these real estate transactions, expressing gratitude to partners and shareholders for their support.
The funding for this acquisition comes from a mix of debt, proceeds from the sale of convertible senior notes, non-recourse mortgage financing, and existing cash reserves. Brookdale strategically expanded its owned community portfolio through a series of negotiated transactions, including deals with Welltower and Diversified Healthcare Trust.
Agreement spread across multiple transactions
Brookdale’s expansion involved purchasing 11 communities from Welltower and joint venture partners, as well as five communities from Welltower alone. The operator also acquired 25 communities from Diversified Healthcare Trust in this multi-faceted deal, totaling $610 million.
