New York-based New Senior Investment Group has completed the sale of its entire assisted living / memory care portfolio for $385 million, the real estate investment trust announced Monday.
The company said its portfolio now consists of 102 independent living properties and one continuing care retirement community.
The REIT had announced plans to sell the 28-community portfolio Nov. 1, having completed a purchase and sale agreement the day before, according to a filing with the Securities and Exchange Commission. That filing identified the buyer as Toledo, OH-based ReNew REIT, a privately held company that as of October had a portfolio of 69 senior living communities in 12 states.
“Ultimately, we concluded that the sale of the entire portfolio will enable us to simplify our business and achieve several of our strategic goals for the company, including enhancing the overall quality of our portfolio and strengthening our balance sheet,” New Senior CEO Susan Givens said during the company’s third-quarter earnings call. “Importantly, the sale of the assisted living / memory care portfolio will enable us to dedicate more of our focus toward growing our core business, which is low-acuity, private-pay senior housing.”
New Senior said it used proceeds from the portfolio sale to reduce debt by approximately $360 million. The REIT also repaid existing loan agreements and entered into a new financing for $270 million secured by 14 independent living assets. Additionally, New Senior entered into an amended and restated $125 million credit facility secured by nine independent living assets.