White Oak Healthcare REIT has closed on the sale of a 31-property portfolio of senior residing communities previously operated by Senior Life-style Corp. to 2 patrons.
One of many patrons was Welltower (NYSE: WELL). The actual property funding belief (REIT) picked up 29 communities for about $147 million and tapped Chicago-based Pathway to Living to manage 22 of them, with Portland, Oregon-based Frontier Administration managing the opposite seven. The opposite purchaser was Midwest Well being, which acquired two properties in Nebraska and Kansas.
That’s based on Newmark, which dealt with the sale and confirmed a few of the transaction’s particulars; and White Oak. SeniorCare Investor first reported on White Oak’s involvement within the transaction.
White Oak has been energetic recently. Earlier this 12 months, the REIT acquired a 16-property portfolio in a three way partnership with Discovery Senior Residing, which is launching its new Morada model with these communities.
In the meantime, the transaction marks an extra contraction of Senior Life-style’s portfolio. The Chicago-based supplier is without doubt one of the largest senior residing operators in the US, rating as No. 8 on the 2021 largest suppliers listing from Argentum. However Senior Life-style can be transitioning out of 23 communities owned by LTC Properties (NYSE: LTC). The Westlake, California-based REIT selected this transfer previous to the pandemic, because of the truth that Senior Life-style had shifted extra towards a administration mannequin, LTC CEO Wendy Simpson stated in a latest SHN+ TALKS look.
A consultant for Chicago-based Senior Life-style wasn’t instantly obtainable to touch upon the deal Friday.
The 22-property portfolio that may now be managed by Pathway includes greater than 1,100 items at communities in California, Georgia, Texas and Washington, whereas Frontier is ready to handle communities totaling somewhat greater than 450 items. Welltower acquired the 22 Pathway communities for a purchase order value of $97 million, or virtually $88,000 per unit; whereas the seven communities managed by Frontier had been bought for about $50 million, or about $110,000 per unit.
Midwest Well being’s facet of the transaction totaled about 142 items for $15 million, or a per-unit value of about $105,000.
A consultant for Senior Life-style wasn’t instantly obtainable to touch upon the deal Friday.
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Toledo, Ohio-based Welltower stated in a June business update that the acquisition of the 29 communities represented a “vital low cost to substitute value.”
“The entire transaction of roughly $147 million is predicted to generate a low-double digit unlevered [internal rate of return] to WELL,” the corporate’s replace learn.
The brand new relationship with Welltower will assist Pathway elevate the care and companies it provides, based on CEO Jerry Finis.
“Welltower was one of many organizations out within the forefront of bringing of their working companions and sharing assets, data and finest practices,” Finis stated throughout an appearance on the SHN podcast Transform earlier this month. “We stay up for that, and we predict it’s going to make a giant distinction.”