Healthpeak Properties’ (NYSE: PEAK) exit from rental senior housing is nearly complete.
The Denver-based health care real estate investment trust (REIT) sold $1 billion in senior housing assets in the first quarter of 2021, bringing the firm closer to completely divesting of its senior housing operating portfolio (SHOP) and triple-net senior housing assets, according to its Q1 2021 earnings release on Tuesday.
The REIT previously completed $2.5 billion in dispositions during the fourth quarter of 2020.
Healthpeak closed on eight transactions in the quarter, highlighted by a $564 million sale of a 12-property SHOP portfolio operated by Oakmont Senior Living, totaling 1,043 units.
The REIT also sold a 10-property SHOP portfolio operated by Discovery Senior Living, totaling 1,428 units, for $334 million. Additionally, two loans and two preferred equity investments were sold in the deal, generating additional proceeds of $21 million. Newmark (NYSE: NMRK) advised the transaction and arranged the financing. The buyer was Lone Star Partners
Finally, Healthpeak sold nine SHOP properties totaling 879 units, generating proceeds of $114 million. Five of the properties are operated by Sonata Senior Living; the remaining communities are operated by Brookdale Senior Living (NYSE: BKD), Capital Senior Living (NYSE: CSU), Milestone Retirement, and Sunrise Senior Living.
Healthpeak CEO Tom Herzog announced the company would dispose of its SHOP and triple-net communities during the REIT’s Q3 2020 earnings call last November, citing Covid-19 as a catalyst for the move.The dispositions will rebalance its total blended portfolio to a mix of life science and medical office communities, as well as continuing care retirement communities (CCRC) that Herzog believes have significant upside due to a lack of competition and positive demand drivers.
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