A joint venture of real estate investors joined forces in November 2016 to purchase a Welltower portfolio of Brookdale Senior Living housing across California, Washington and Florida for $930 million. Toledo, OH-based Welltower, formerly Health Care REIT, and China-based Cindat Capital Management Limited and Union Insurance Co. Ltd are investing in the portfolio. The 39-asset portfolio includes 11 seniors housing properties, which are all master leased to Brookdale Senior Living and 28 long-term care facilities leased to China-based Genesis Healthcare, Inc. two of which just sold in Snohomish County for a total of $70.56 million.
Through the joint venture, Welltower will retain a 25 percent interest in the facilities while Cindat and Union Life will own a 75 percent interest. The transaction will be Cindat’s first healthcare real estate investment in the United States.
The 11 seniors living facilities stretch across California, Washington and Florida with locations in Stanwood, WA; Whittier, CA; Naples, FL; Olympia, WA; San Ramon, CA; Kennewick, WA; Monroe, WA; two in Hemet, CA and two in Seattle, WA.
One of the senior living facilities included in the portfolio, Brookdale Stanwood – Senior Living and Memory Care located at 7212 265th St NW, sold for $35.73 million on March 13th. Public records show $950,000 was deducted in personal property. The other Seattle facility, Brookdale Monroe – Senior Living and Memory Care at 15465 179th Ave. SE also sold on March 13th for $34.83 million. Snohomish County public records show $960,000 was deducted in personal property, resulting in a taxable selling price of $33.87 million.
In February two other Brookdale locations in Washington sold. Brookdale Admiral Heights at 2326 California Ave SW in Seattle, sold for $11.708 million on February 21st. The facility offers both assisted living and independent living for residents and includes a range of amenities such as pet-friendly homes, a courtyard with gardening beds and pots, a library, cafe and bistro, guest suites and a library. Another Seattle facility, Brookdale West Seattle at 4611 35th Ave SW, also sold on February 21st for $18.55 million or $229,012 per unit. King County public records show nearly $500,000 was deducted in personal property, resulting in a taxable selling price of $18.06 million.
In a press release, Greg Peng, CEO at Cindat Capital Management and also representative of both Cindat and Union Life said, “With aging demographics and U.S. healthcare trends driving the need for innovative health care infrastructure, we believe the sector represents an attractive long-term investment opportunity.”
While Brookdale provides services in independent and assisted living, Genesis provides skilled nursing for people with chronic conditions and post-acute care for patients recovering from illness and medical procedures, according to the release.