Brookdale Expands Real Estate Footprint with Recent Acquisitions
Brookdale Senior Living Inc. Enhances Portfolio
Brookdale Senior Living Inc. (NYSE: BKD) is pleased to announce the successful closing of two important acquisitions aimed at enhancing its real estate ownership. This milestone marks a significant step in Brookdale's ongoing strategy to expand its market presence and improve profitability through increased ownership of senior living communities.
Details of the Acquisitions
On February 27, Brookdale finalized the acquisition of two prominent portfolio transactions that add 30 communities and 1,561 units to its substantial portfolio. These acquisitions are crucial as they complete an earlier plan announced in the last quarter of the previous year.
Acquisition from Welltower Inc.
The first of the two portfolios acquired consists of five vibrant communities, previously leased from Welltower Inc. The total value for this acquisition was $175 million. Notably, these communities have demonstrated strong performance metrics, including an occupancy rate exceeding 90%, reflecting their desirability in affluent markets.
Acquisition from Diversified Healthcare Trust
The second part of the acquisition involved 25 communities from Diversified Healthcare Trust. This portfolio, valued at $135 million, encompasses a mix of assisted living and memory care units, contributing to Brookdale's diverse service offerings tailored to meet the needs of seniors across various demographics.
Financing Structure
To fund these acquisitions, Brookdale utilized a combination of cash reserves and mortgage debt financing. Specifically, they accessed $69 million in cash on hand, coupled with $241 million in mortgage financing arranged through CBRE National Senior Housing. This strategic approach ensures that Brookdale maintains financial flexibility and continues to secure advantageous terms for future opportunities.
Agency Financing Support
Among the significant financing agreements, Brookdale secured a $161 million mortgage loan from Ally Bank, which provided essential capital to support these acquisitions. This loan includes provisions for extending the loan term, thereby further enhancing the company's strategic financial management capabilities.
Commitment to Growth and Quality Service
Lucinda Baier, Brookdale's President and CEO, emphasized the company's strategic direction, stating that ownership of their communities allows Brookdale to harness the full potential of the current positive dynamics in the senior living industry. With an aging population and increased demand for quality care, Brookdale is well-positioned to take advantage of these trends.
As of now, Brookdale aims to own more than 75% of its operational units by the year-end, significantly elevating its standing in the industry. The company is dedicated to enriching the lives of seniors through its exceptional services and commitment to quality care.
About Brookdale Senior Living
Brookdale Senior Living stands as a leader in the senior living sector, operating 647 communities across a wide geographic footprint. The company is committed to offering tailored solutions for independent living, assisted living, and memory care, ensuring that their residents receive the care and service needed to thrive.
Frequently Asked Questions
What recent acquisitions has Brookdale made?
Brookdale has completed two significant portfolio acquisitions, adding 30 communities and improving its real estate ownership position.
How much did Brookdale spend on the acquisitions?
The company spent $175 million on the Welltower portfolio and $135 million on the Diversified Healthcare Trust portfolio.
What financing methods did Brookdale use for these acquisitions?
Brookdale financed the acquisitions using a combination of cash reserves and mortgage debt financing totaling $310 million.
What is the future growth plan for Brookdale?
Brookdale aims to increase its ownership of operational units to over 75% by the year-end, enhancing its market position.
What services does Brookdale provide?
Brookdale offers services including independent living, assisted living, memory care, and continuing care retirement communities, focusing on enriching lives through tailored care.
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