TOLEDO, OHIO — Welltower Inc. (NYSE: HCN), a seniors housing and healthcare facility REIT, has entered into a definitive agreement to acquire a portfolio of properties on the West Coast operated by Vintage Senior Living for $1.15 billion. The transaction spans 2,590 units in 19 independent living, assisted living and memory care communities concentrated in Southern and Northern California and in the state of Washington.
Welltower will transition management of these communities to Senior Resource Group (11 properties), Sunrise Senior Living (seven properties) and Silverado (one property), once the acquisition has been completed.
“This acquisition reinforces our high-quality healthcare real estate portfolio and leading presence in two of the top U.S. metro markets,” says Tom DeRosa, CEO of Welltower. “Together with our operating partners, we are excited about the opportunities to provide the best senior care with a focus on wellness and innovation.”
Vintage Senior Living will continue to operate its communities until the purchase has been completed. The transaction is expected to close in tranches beginning in September and will be subject to lenders’ approvals and customary regulatory approvals.
“These properties are in attractive markets, including irreplaceable locations near San Francisco’s Golden Gate Park and Nob Hill, with a growing population of seniors, favorable supply-and-demand fundamentals and high barriers to entry,” says Scott Brinker, chief investment officer of Welltower.
Including this acquisition, Toledo-based Welltower owns 114 healthcare properties in California and will be the largest owner of seniors housing properties in both Southern and Northern California. The REIT’s portfolio is located in high-growth markets in the United States, Canada and the United Kingdom, comprising seniors housing, post-acute communities and outpatient medical properties.
Welltower’s stock price closed on Monday, Aug. 1 at $79.57 per share, up from $69.83 per share at this time last year.
— John Nelson