BRENTWOOD, Tenn. — Brookdale has entered into a definitive agreement to acquire the real estate of 17 senior living communities currently leased and operate by the company. Brookdale is acquiring the properties from an undisclosed seller for $157 million. Brookdale will fund the purchase, which is expected to close in the fourth quarter of 2026, with non-recourse mortgage financing and cash on hand.
The portfolio totals 735 units.
“The acquisition of these 17 communities, currently leased by Brookdale, represents another positive step in Brookdale’s strategy to increase its ownership of real estate within our existing operating footprint and reduce long-term lease obligations,” says Nick Stengle, chief executive officer of Brookdale. “Upon closing this acquisition, Brookdale will only have four long-term lease portfolios remaining, and the remaining leased portfolio in aggregate is producing positive cash flow.”
The company anticipates that the transaction will reduce annual cash rent payments for 2027 by $11 million.
In July, Brookdale obtained $249 million of fixed-rate mortgage financing under its existing master credit facility with Fannie Mae. Proceeds from the financing repaid $244 million of outstanding mortgage debt scheduled to mature in 2027.