Lucinda “Cindy” Baier
Three previously announced transactions between Brookdale Senior Living and real estate investment trust Healthpeak Properties (formerly HCP Inc.) were finalized as of Jan. 31, Brookdale said Monday.
Irvine, CA-based Healthpeak acquired Brentwood, TN-based Brookdale’s 51% equity interest in 14 entry-fee continuing care retirement communities, resulting in more than $285 million in net cash proceeds, Brookdale said. Healthpeak also paid Brookdale a $100 million management termination fee.
The REIT now has a 100% ownership interest in the communities, management of which it previously said would be taken over by Des Moines, IA-based Life Care Services.
Additionally, the country’s largest senior living company bought 18 formerly leased communities from Healthpeak for $405 million. Brookdale and Healthpeak amended and restated the master lease for 24 other leased communities.
Brookdale and the REIT are jointly marketing for sale additional entry-fee CCRCs.
“This transaction also reduces our lease exposure, improves our consolidated cash flow and increases our liquidity and financial strength,” Brookdale President and CEO Lucinda “Cindy” Baier said in a statement. “This set of transactions is another example of our ability to unlock significant value while reducing the complexity of our business,” she added.
Brookdale’s news Monday followed a Jan. 22 announcement by National Health Investors that Brookdale had exercised its option to purchase eight assisted living communities in three states from the REIT for $39.26 million. NHI previously had classified these communities, which have a combined total of 336 units, as assets held for sale.
