American Healthcare REIT Buys 8 Properties for $696M
The deal brings the company's acquisitions this year to more than $2 billion.
American Healthcare REIT has acquired a portfolio of eight senior housing communities for about $696 million. The communities are relatively new, built between 2020 and 2022, and total 867 units along the Eastern Seaboard.
Originally, 10 properties were in the portfolio and were marketed together. The acquisitions were executed through a series of transactions over a six-week period that allowed AHR to obtain the eight assets it views as core, while simultaneously facilitating the sale of the other two properties by another institutional investor. Berkshire was the seller of some of the assets, according to public filings.
This deal puts the company’s total year-to-date investments to more than $2 billion.
Among others, the properties include Fieldstone at Chester Springs and the Residence at Bala Cynwyd, both in Pennsylvania; the Holbrook of Sugar Hill in Georgia; the Lodge at Historic Lewes in Delaware; the Residence at Basking Ridge in New Jersey, the Residence at Bedford in Massachusetts and the Residence at Westport in Connecticut.
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AHR has also established a new operating relationship with LCB Senior Living concurrently with the deal. Of the communities that AHR acquired, five were developed and managed by LCB and two have been transitioned to LCB from the previous operator.
In the case of Holbrook of Sugar Hill, the property was developed and managed by Holbrook Life, a senior living provider. Holbrook Life will continue to manage the community.
According to AHR Chief Investment Officer Stefan Oh, while capital can finance the construction of a new community, it cannot create entitled sites in Westport, Basking Ridge, suburban Boston or Philadelphia’s Main Line. The portfolios’ long-term value comes from its combination of real estate that is difficult to replicate (in) markets where supply is genuinely constrained, according to Oh.
AHR on an Investment Spree
The AHR deal involving East Coast properties comes on the heels of the company’s acquisition of six senior housing communities from Kensington Senior Living for about $572 million. The portfolio totals 464 units, and expands the REIT’s senior housing holdings in a number of markets, including the Los Angeles, San Francisco Bay Area, Washington, D.C. and New York metros.
Last week, the company also paid $197 million for the acquisition of two senior housing properties totaling 545 units in California. Sold by Affinius Capital and Alliance Residential Co., the properties represent one of the largest senior housing portfolio sales in Northern California in recent years.
