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American Healthcare REIT to buy 16 senior housing facilities for $1.5B
The deals would add 1,612 total units, with Kensington communities expected to close in the fourth quarter.
American Healthcare REIT (AHR) is spending more than $1.5 billion across two transactions to acquire 16 senior housing facilities, expanding its footprint in high-end, supply constrained markets, Bisnow reports.
AHR said it is kicking off a strategic partnership with Kensington Senior Living by acquiring an eight property portfolio for $873 million, covering 745 units that are 93% assisted living or memory care across Los Angeles, San Francisco, Washington, D.C., and New York metro areas. The Kensington communities, including two communities AHR is expected to sell, are planned to close in the fourth quarter to finalize that transaction.
In a separate deal, AHR will buy another eight assets on the East Coast for $696 million from a group of sellers. That portfolio includes 867 units across Massachusetts, Connecticut, New Jersey, Pennsylvania, Delaware, and Georgia.
AHR, which has a roughly $12.9 billion market capitalization, said it has deployed more than $2 billion in investment capital this year and that the acquisitions support its strategy of adding Class A, luxury senior housing that is difficult to replicate. The REIT also said the East Coast acquisition includes a new operating relationship with Norwood, Massachusetts based LCB Senior Living, which develops and operates luxury communities in the Northeast and mid Atlantic.