TOLEDO, OHIO AND TORONTO —A joint venture between Welltower Inc. (NYSE: HCN) and Canada Pension Plan Investment Board (CPPIB) has acquired a 97.5 percent interest in a seniors housing portfolio located in Florida for $555 million.The seller was Kayne Anderson, which bought the portfolio in late 2013 for an estimated $400 million from GE Healthcare Finance.
Of the 97.5 percent interest that the joint venture acquired, CPPIB owns 45 percent while Welltower owns 55 percent. Discovery Senior Living owns the remaining 2.5 percent and operates the six properties that make up the portfolio.
“As a long-term investor, CPPIB provides a large, global alternative capital source to the public markets that enables us to continue driving the evolution of healthcare infrastructure with our unparalleled network of leading health system and seniors housing operating partners,” says Thomas DeRosa, CEO of Welltower.
The portfolio, known as Aston Gardens, is comprised of six private-pay seniors housing properties that have a total of 1,930 units. The communities, all located in Florida, include:
- Aston Gardens at Pelican Marsh in Naples
- Aston Gardens at Parkland Commons in Parkland
- Aston Gardens at Sun City Center in Sun City Center
- Aston Gardens at the Courtyards in Sun City Center
- Aston Gardens at Tampa Bay in Tampa
- Aston Gardens at Pelican Pointe in Venice
Aston Gardens at Sun City Center provides exclusively independent living, while the remainder of the communities provide a combination of independent living, assisted living and memory care.
The genesis of Aston Gardens dates back to the 1990s. Richard Hutchinson, president and CFO of Discovery Senior Living, told Seniors Housing Business in an April 2014 interview. At the time, Aston Gardens was paving the way for independent living communities.
“The seniors housing industry was not well known back then, and the independent living sector was even less known or understood,” said Hutchinson. “Add to that our plan of offering independent living, assisted living and memory care products in a rather large campus with no operating history that we could point to, and it became clear that we had our work cut out for us.”
Each Aston Gardens community features a Grande Clubhouse, which includes lounges and living area, a beauty salon and barber shop, fitness center, game rooms, heated swimming pool, dining rooms, ballroom, and activity center. Residents at Aston Gardens communities also have access to complimentary health screenings and scheduled transportation.
“The Aston Gardens product has stood the test of time and continues to be one of the pre-eminent portfolios in the industry,” said Hutchinson in the SHB interview.
Ryan Maconachy and Chad Lavender, senior managing directors for HFF, represented Kayne Anderson in the sale.
Welltower’s stock closed on Thursday, Feb. 18 at $58.68 per share, down from $78.11 one year prior.
— Christina Cannon