Healthpeak Properties’ (NYSE: PEAK) plan to dispose of up to $4 billion worth of senior housing assets is more than halfway complete.
The Denver-based health care real estate investment trust (REIT) sold over $2.5 billion in senior housing operating portfolio (SHOP) and triple-net senior housing assets according to its earnings Q4 2020 earnings release on Tuesday.
Additionally, the REIT has executed purchase and sale agreements and/or offer letters on an additional $1.5 billion in senior housing assets.
Healthpeak closed 12 sales transactions in the quarter, paced by the $510 million sale of 24 communities operated by Brookdale Senior Living (NYSE: BKD) to Omega Healthcare Investors (NYSE: OHI), which was announced last week, and a $350 million disposition of 10 communities to a joint venture of Aegis Senior Living and Blue Moon Capital Partners.
The REIT also announced the following sales:
- A 12-property SHOP portfolio totaling 1,561 units, operated by Atria Senior Living, in December for $312 million
- A $156 million sale of 10 SHOP communities and three triple-net properties, totaling 1,384 units. Operators include Atria (5), Capital Senior Living (3), Sunrise Senior Living (2), Saber (2) and LCB (1).
Transactions closed after Q4 include:
- A $664 million sale of a 32-property SHOP portfolio, totaling 3,235 units, operated by Sunrise Senior Living in January.
- Also in January, a $230 million sale of a portfolio of 16 SHOP properties, totaling 1,801 units, predominantly located in Texas. The operators include Capital Senior Living (7), Atria Senior Living (6) and Life Care Services (3).
- In February, a $132 million sale of an 8-property NNN portfolio, totaling 790 units, operated by Harbor Retirement Associates.
The buyer of the HRA portfolio is Welltower (NYSE: WELL), according to the Toledo, Ohio-based REIT’s earnings announcement, also released Tuesday.
Brookfield Properties acquired the Sunrise portfolio, local news reports indicate. The global real estate services company and alternative asset manager has more than $540 billion in total assets under management.
Newmark was the sole advisor on the Sunrise transaction.
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Healthpeak CEO Tom Herzog announced the company would dispose of its SHOP and triple-net communities during the REIT’s Q3 2020 earnings call last November, citing Covid-19 as a catalyst for the move.
The dispositions will rebalance its total blended portfolio to a mix of life science and medical office communities, as well as continuing care retirement communities (CCRC) that Herzog believes have significant upside due to a lack of competition and positive demand drivers.