Diversified Healthcare Trust announced on September 29, 2024, that it has entered into a purchase and sale agreement with Brookdale Senior Living Inc. for the sale of 18 triple net leased senior living communities. The transaction is valued at $135 million, which equates to approximately $154,000 per unit.
These 18 communities comprise 876 units located across 10 states and have been leased and operated by Brookdale since February 2003. DHC intends to utilize the proceeds from this sale to reduce its outstanding $941 million senior secured notes, which are due in January 2026.
Chris Bilotto, President and CEO of DHC, stated that this transaction is part of ongoing initiatives to optimize the company's portfolio and enhance liquidity. The sale monetizes this triple net portfolio at a premium valuation, reflecting an in-place cap rate on the lease's annualized income of 7.3% and is expected to reduce DHC's leverage.
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