Key Takeaways
- • Blackstone acquired a 26-property senior housing portfolio operated by Senior Lifestyle from Welltower for $745 million in Q1 2017, representing one of the largest senior housing deals to close in that quarter.
- • The transaction comprised 3,400 senior living units at a price per unit exceeding $200,000, according to sources familiar with the deal.
- • Blackstone simultaneously closed a separate $1.1 billion acquisition of 64 Brookdale Senior Living properties from HCP Inc. in the same quarter, demonstrating aggressive expansion into senior housing.
- • Welltower has been actively repositioning its portfolio through substantial dispositions, including billions in asset sales completed by end of 2016, as part of its ongoing strategic realignment.
- • Senior Lifestyle, a family-owned Chicago-based operator, managed 204 communities across 29 states as of 2016, and confirmed the transaction to Senior Housing News.
Summary
Blackstone Group completed a $745 million acquisition of a 26-property senior housing portfolio operated by Senior Lifestyle from real estate investment trust Welltower in the first quarter of 2017. The deal involved 3,400 units priced at more than $200,000 per unit, making it among the largest senior housing transactions to close during the period, according to a report from the National Investment Center for Seniors Housing & Care (NIC).
Chicago-based Senior Lifestyle, a family-owned operator managing 204 communities across 29 states as of 2016, confirmed the transaction to Senior Housing News after initially remaining unannounced. Toledo, Ohio-based Welltower did not immediately respond to inquiries regarding the sale, though the REIT has been undertaking an aggressive portfolio repositioning strategy that included billions in dispositions completed by the end of 2016.
The transaction reflects Blackstone's broader strategic push into senior housing during early 2017. In the same quarter, the New York-based private equity firm closed a separate $1.1 billion acquisition of 64 properties operated by Brookdale Senior Living, which it purchased from REIT HCP Inc. These parallel acquisitions underscore Blackstone's significant capital deployment in the sector. According to supplemental market reporting, much of Blackstone's senior housing portfolio consisted of communities with middle-market rental rates ranging between $3,500 and $6,000 per month.
Blackstone's activity in senior housing extended beyond these two major acquisitions. The firm was reported to be exploring acquisition opportunities with Brookdale Senior Living on a whole or partial basis, though interest appeared to have diminished by early 2017. Additionally, Blackstone was identified as a potential acquirer of Kindred Healthcare, one of the nation's largest post-acute care providers, demonstrating the firm's broad interest in healthcare real estate and senior care infrastructure during this period.
Chicago-based Senior Lifestyle, a family-owned operator managing 204 communities across 29 states as of 2016, confirmed the transaction to Senior Housing News after initially remaining unannounced. Toledo, Ohio-based Welltower did not immediately respond to inquiries regarding the sale, though the REIT has been undertaking an aggressive portfolio repositioning strategy that included billions in dispositions completed by the end of 2016.
The transaction reflects Blackstone's broader strategic push into senior housing during early 2017. In the same quarter, the New York-based private equity firm closed a separate $1.1 billion acquisition of 64 properties operated by Brookdale Senior Living, which it purchased from REIT HCP Inc. These parallel acquisitions underscore Blackstone's significant capital deployment in the sector. According to supplemental market reporting, much of Blackstone's senior housing portfolio consisted of communities with middle-market rental rates ranging between $3,500 and $6,000 per month.
Blackstone's activity in senior housing extended beyond these two major acquisitions. The firm was reported to be exploring acquisition opportunities with Brookdale Senior Living on a whole or partial basis, though interest appeared to have diminished by early 2017. Additionally, Blackstone was identified as a potential acquirer of Kindred Healthcare, one of the nation's largest post-acute care providers, demonstrating the firm's broad interest in healthcare real estate and senior care infrastructure during this period.
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