Healthpeak Sells 24-Building Brookdale Portfolio to Omega for $510M

Healthpeak Properties (NYSE: PEAK) continues to make progress on its portfolio realignment strategy.

The Denver-based health care real investment trust (REIT) sold 24 senior housing communities to another REIT, Omega Healthcare Investors (NYSE: OHI), on January 20 for $510 million. Hunt Valley, Maryland-based Omega announced the deal in a press release in conjunction with its fourth quarter 2020 earnings.

The portfolio totals 2,552 units in Arizona, California, Florida, Illinois, New Jersey, Oregon, Tennessee, Texas, Virginia and Washington. In the process, Omega also assumes an in-place master lease on the communities with Brookdale Senior Living (NYSE: BKD) with a contractual rent of $43.5 million due in 2021, with a 2.4% annual escalator.

“We also took advantage of strong capital markets in the quarter to issue both debt and equity to enhance our balance sheet and fund acquisitions,” Omega CEO Taylor Pickett said in the release.

Omega is primarily an owner of skilled nursing facilities, with an operating asset portfolio of 957 facilities with over 96,000 operating beds as of the third quarter of 2020. But Omega also owned 132 senior housing properties as of Q4 2020, with the largest operator concentration being 15 Maplewood Senior Living properties. Maplewood’s portfolio includes Inspir Carnegie Hill, a luxury highrise senior living community in Manhattan developed in partnership with Omega.

The project, which launches Maplewood’s Inspir brand, was originally slated to open in Q1 2020 but was delayed due to Covid-19.

The pandemic is also the impetus behind Healthpeak’s decision to sell up to $4 billion in senior housing operating portfolio (SHOP) and triple-net senior housing assets, and rebalance its total blended portfolio in favor of medical office buildings, life science assets and continuing care retirement communities.

Omega and Healthpeak did not respond to requests for comment from Senior Housing News.

Last month, Healthpeak disposed of 10 properties operated by Aegis Living to a joint venture of the Bellevue, Washington-based operator and its capital partner, Blue Moon Capital Partners, for $350 million. It is the largest deal in Aegis’ history.

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