January 2, 2018
TOLEDO, Ohio–Welltower Inc. (NYSE: HCN) today announced it has entered into a definitive agreement to acquire a portfolio of rental continuing care retirement communities (CCRCs). The transaction comprises four communities offering a full continuum of care including independent living, assisted living, memory care and post-acute care concentrated in attractive markets within the Washington D.C., Miami and Charlottesville MSAs.
The portfolio is currently managed by Sunrise under triple-net leases. Welltower will acquire the landlord’s ownership interest for $368 million and will transition the communities to a RIDEA structure to deliver next generation care. Welltower has closed on one of the communities with the remaining three to follow in the first quarter of 2018. This investment is projected to generate a nominal year one cap rate of 7 percent.
“We are pleased to announce the acquisition of this unique portfolio. Only Welltower, with our superior relationship investment model, is able to source, execute and unlock immediate value in off market investments such as this,” said Tom DeRosa, CEO of Welltower. “These assets, located in top markets, represent both an enhancement to our Sunrise portfolio and a significant above market return for our shareholders.”
Founded in 1981 and headquartered in McLean, VA, Sunrise Senior Living operates more than 300 communities in the United States, Canada and the United Kingdom, with a total unit capacity of over 30,000. Welltower has over $6billion of investments with Sunrise Senior Living.