NEW YORK CITY — Welltower Inc. (NYSE: HCN) and Hines have purchased a development site at 139 E. 56th St. in Midtown Manhattan for an undisclosed price. The new owners plan to build a 15-story assisted living and memory care community on the site.
Design and development plans are in progress and will be released at a later date. One known detail is that the ground floor will contain retail.
Eastern Consolidated represented the sellers, Stephen Meringoff and Dennis Riese, the owners of the two existing properties that comprise the site, in the transaction. The existing buildings will be demolished to make way for the new community.
This is the first venture into senior living for Hines, an international real estate development, investment and management company. Although the company is based in Houston, this deal was made through the New York office.
Toledo, Ohio-based Welltower, meanwhile, is the largest healthcare REIT in the United States by market cap. Formerly known as Health Care REIT, the company was the third-largest owner of seniors housing properties in the country as of June 1, according to the American Seniors Housing Association.
“Consistent with Welltower’s focus on high-quality assets in major metropolitan markets, we expect this project will support a more connected model for health care delivery to seniors, especially those who face cognitive challenges,” says Mercedes Kerr, senior vice president of business development. “We’re very pleased to be partnering with global real estate leader Hines and believe it exemplifies that we are the partner of choice in healthcare real estate.”
Welltower’s stock price closed at $70.64 per share on Monday, April 18, down from $75.26 one year ago.