Senior living owner-operator CareOne is rumored to be looking into the sale potential of as much as $2 billion worth of real estate assets spanning dozens of senior housing and care communities, Reuters is reporting.
Citing “people familiar with the matter,” Reuters confirmed the company has engaged Jeffries to “explore the possibility of its real estate holdings,” but that should a sale occur, the company’s operations would not be impacted.
CareOne has indicated that the company is not for sale.
“CareOne is not for sale. We can confirm that CareOne engaged Jeffries to explore the possibility of selling its real estate holdings, however, should the sale of the real estate holdings be consummated it will have no impact on CareOne’s continued operations of the business,” a company spokeswoman told SHN in an emailed statement.
CareOne currently operates nearly 70 properties across the nation spanning sub-acute rehabilitation, assisted living, long-term care, memory care, long-term acute-care hospitals, respite care and medical specializations. Of its care centers, 29 are located in New Jersey.
Among recent blockbuster deals in the senior housing space, the Big Three Healthcare REITs Ventas, Health Care REIT and HCP Inc. have said they are not ruling out large portfolio deals, though most recently, Ventas has targeted growth through its REIT-to-REIT acquisition American Realty Capital for $2.6 billion.
Following the economic downturn and subsequent recovery, most multi-billion senior housing deals have been snapped up by healthcare REITs that specialize in health care property types, though new investors to the space have also emerged.
CareOne founder and CEO Daniel Straus is no stranger to large portfolio sales; in 1997 he sold Multicare Companies, which he co-founded, to Genesis Health Ventures and private equity backers for a purchase price of $1.06 billion.
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Written by Elizabeth Ecker