Diversified Healthcare Trust has transitioned management of 66 former Five Star Senior Living properties to other providers as part of a previously announced plan, the real estate investment trust said Tuesday.
Charter Senior Living, Oaks-CaraVita Senior Care and Phoenix Senior Living are the new operators.
The REIT announced in April that it would be moving 108 Five Star communities, representing approximately 7,500 units, to other operators by the end of 2021. The three new management agreements announced Tuesday total 4,084 units and represent approximately 61% of the communities to be transitioned from Five Star, according to a press release.
“These new agreements are generally for five years at market terms, which include base and incentive management fees. In certain circumstances, these agreements provide terms that are more favorable to the new operators than our existing management agreements with Five Star, which we believe will provide strong incentives for performance and alignment of interests as well as facilitate a faster recovery of the transitioning communities with the new operators,” DHC President and CEO of Diversified Healthcare Trust Jennifer Francis said in a statement. “We believe we remain on schedule to complete all of the transitions by year-end and are excited to engage with new operators who bring new perspectives and expertise to our communities as we begin to recover from the COVID-19 pandemic.”
Charter will manage communities in Florida, Maryland, Tennessee and Virginia; Oaks-CaraVita will manage communities in Georgia and South Carolina; and Phoenix will manage communities in Alabama, Arkansas, Kentucky, Missouri, North Carolina and South Carolina.