Healthpeak Properties’ (NYSE: PEAK) plan to dispose of up to $4 billion worth of senior housing assets is more than halfway complete.
The Denver-based health care real estate investment trust (REIT) sold over $2.5 billion in senior housing operating portfolio (SHOP) and triple-net senior housing assets according to its earnings Q4 2020 earnings release on Tuesday.
Additionally, the REIT has executed purchase and sale agreements and/or offer letters on an additional $1.5 billion in senior housing assets.
Healthpeak closed 12 sales transactions in the quarter, paced by the $510 million sale of 24 communities operated by Brookdale Senior Living (NYSE: BKD) to Omega Healthcare Investors (NYSE: OHI), which was announced last week, and a $350 million disposition of 10 communities to a joint venture of Aegis Senior Living and Blue Moon Capital Partners.
The REIT also announced the following sales:
- A 12-property SHOP portfolio totaling 1,561 units, operated by Atria Senior Living, in December for $312 million
- A $156 million sale of 10 SHOP communities and three triple-net properties, totaling 1,384 units. Operators include Atria (5), Capital Senior Living (3), Sunrise Senior Living (2), Saber (2) and LCB (1).
Transactions closed after Q4 include:
- A $664 million sale of a 32-property SHOP portfolio, totaling 3,235 units, operated by Sunrise Senior Living in January.
- Also in January, a $230 million sale of a portfolio of 16 SHOP properties, totaling 1,801 units, predominantly located in Texas. The operators include Capital Senior Living (7), Atria Senior Living (6) and Life Care Services (3).
- In February, a $132 million sale of an 8-property NNN portfolio, totaling 790 units, operated by Harbor Retirement Associates.
The buyer of the HRA portfolio is Welltower (NYSE: WELL), according to the Toledo, Ohio-based REIT’s earnings announcement, also released Tuesday.
Brookfield Properties acquired the Sunrise portfolio, local news reports indicate. The global real estate services company and alternative asset manager has more than $540 billion in total assets under management.
Newmark Knight Frank was the sole advisor on the Sunrise transaction.
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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