Ventas to Acquire Manhattan Community for $194M in Sale-Leaseback with Brookdale

NEW YORK CITY — Brookdale Senior Living Inc. (NYSE: BKD) has agreed to sell Brookdale Battery Park, an independent living community in Manhattan, for $194 million.

The buyer is Chicago-based REIT Ventas Inc. (NYSE: VTR), which expects the deal to close by year’s end. The sales price includes debt and translates to an exit capitalization rate of 5 percent for Brookdale.

The 14-story property features 217 units overlooking the Hudson River and offers convenient access to areas such as Tribeca, SoHo and the Financial District. Amenities include a library, arts and crafts studio and a beauty/barber shop.

“The Battery Park acquisition firmly establishes Ventas as the market leader in seniors housing in the elite Manhattan market,” says Debra A. Cafaro, chairman and CEO of Ventas. “Battery Park adds an irreplaceable, well-established community to our high-quality seniors housing portfolio and is uniquely positioned to benefit from New York City’s strong demographics.”

Brookdale will continue to operate the property following the change in ownership. HFF represented Brookdale in the transaction.

Brookdale is the largest owner and operator of seniors housing communities in the United States, managing 988 communities in 46 states as of June 30. The company is undergoing a massive restructuring after years of flagging stock prices, which many credit to the company’s struggle to digest its acquisition of fellow seniors housing giant Emeritus Corp. in 2014. 

Brookdale’s stock price closed at $8.14 per share on Friday, Aug. 17, down from $11.82 per share a year ago and down from its five-year high of $38.72 per share in April 2015.

Ventas is a publicly traded healthcare REIT and the third-largest owner of seniors housing in the United States. The company’s portfolio includes approximately 1,200 assets in the United States, Canada and the United Kingdom including seniors housing communities, medical office buildings, life science and innovation centers, inpatient rehabilitation and long-term acute care facilities, health systems, and skilled nursing facilities. 

Ventas’ stock price closed at $74.71 per share on Friday, Aug. 17, up from $68.42 per share a year ago.

Taylor Williams and Jeff Shaw