Welltower expands active adult presence with Treplus Communities partnership, provides business update

Toledo, OH-based Welltower is expanding its presence in the active adult rental community sector with the addition of Columbus, OH-based Treplus Communities properties to its portfolio. 

The Treplus Communities model is suburban independent living communities that consist of 90 to 150 units. Each unit is 1,200 to 1,600 square feet. The company develops, holds and manages a growing portfolio of Housing for Older Persons Act-compliant active adult communities in the Midwest. HOPA eliminates the requirement that communities for those aged 55 or more years offer senior care services.

Currently, three Treplus Communities are established in Central Ohio with additional Ohio locations planned for 2021 as well as expansion into other Midwest states. The new relationship between the real estate investment trust and Treplus Communities is expected to accelerate growth plans. 

“We are pleased to partner with Welltower, the leader in healthcare real estate, and share with Welltower an understanding of what baby boomers desire in downsizing options,” Treplus Managing Partner Jane Arthur Roslovic said in a press release.

Business update

In a business update provided Thursday, Welltower said that as of April 30, the 13,000 senior living communities in its portfolio had a collective spot occupancy of 74%, representing an approximate occupancy gain of 80 basis points (0.8%) since a pandemic-low on March 12. April marked the first monthly senior housing operating  portfolio occupancy gain for the REIT since before the COVID-19 pandemic, according to Welltower.

Move-ins increased 101% between January and April, and move-outs decreased by 19% during that same time period, according to the update. New starts are down for the near-term due to rising costs of construction materials, Welltower said, adding that lumber prices have increased approximately five times over the past five years and have risen 390% since April 2020. There has been a 71% decline in starts across the industry since its construction peak in 2018, according to the update.