IRVINE, Calif. — American Healthcare REIT has completed the $572 million acquisition of a 464-unit portfolio. Kensington Senior Living is the seller.
The properties, which are also operated by Kensington, are located in the Los Angeles; San Francisco Bay Area; Washington, D.C.; and New York City metros.
The six-community portfolio is part of a broader, eight-community portfolio totaling 745 units. American Healthcare plans to acquire the remaining two properties for a total purchase price of $873 million. According to a press release issued by the company, the investment amount is “well below replacement cost.”
The remaining two communities are subject to definitive purchase agreements, expected to close in the fourth quarter of this year.
This transaction marks the beginning of a long-term strategic relationship between Irvine, California-based American Healthcare and Kensington, according to the companies. The acquisition opportunity was marketed through a limited-channel process, rather than a broadly marketed auction.
“When we decided to pursue a transaction, our objective was not simply to maximize price,” says Dave Faeder, founding managing partner of Kensington Senior Living. “We were primarily seeking the best long-term strategic partner for Kensington, and we chose American Healthcare REIT. They were not the highest bidder.”
Kensington Senior Living is a privately held developer, owner and operator of senior living with a focus on luxury and higher-acuity seniors housing.