ReNew REIT Named as Buyer of $385M New Senior Portfolio

The buyer of New Senior Investment Group’s (NYSE: SNR) portfolio of assisted living and memory care communities has been revealed.

ReNew REIT, the health care real estate investment trust recently founded by former Health Care REIT CEO George Chapman, was listed as the buyer in a 10Q form New Senior filed on Tuesday with the Securities and Exchange Commission. Health Care REIT now is known as Welltower (NYSE: WELL).

New York City-based New Senior announced the $385 million sale last week in conjunction with Q3 2019 earnings. The portfolio consists of 28 assisted living and memory care properties across 14 states, and has six different operators attached. The disposition was struck so that the REIT could focus on transforming its senior housing portfolio which is 83% independent living. These properties are more stable than its assisted living assets were, New Senior CEO Susan Givens said during the company’s Q3 earnings call.

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Toledo, Ohio-based ReNew REIT has hit the ground running since its founding in February 2018, focusing on acquiring private-pay independent living, assisted living and memory care assets.

In May 2018, ReNew entered into a RIDEA partnership with Roswell, Georgia-based provider Phoenix Senior Living. The REIT acquired a portfolio of properties from Bloomfield Hills, Michigan-based owner and operator American House Senior Living Properties late last year for $243.4 million.

New Senior has undertaken some bold steps in the past year to both transform its senior housing portfolio and put some light between itself and private equity giant Fortress Investment Group (NYSE: FIG). The company finalized a plan last November to internalize its operations, and terminated a management agreement under which New Senior was externally advised and managed by a Fortress affiliate.

In April, New Senior received $53 million as part of a settlement with Fortress, its primary operator, Holiday Acquisition Holdings, and members of its board of directors. The REIT spent 2018 restructuring its portfolio and management, and retired $125 million in debt last December through a combination of cash on hand and a revolving credit facility.

But the performance of New Senior’s assisted living assets continued to plague the company throughout 2019, a trend Givens expected to extend into 2020.

New Senior did not respond to a request for comment from SHN.

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