Sunrise Senior Living to Sell for $1B
The platform has more than 50 communities in the pipeline, with an estimated development cost of $7.5 billion.
BDT & MSD Partners has entered into a definitive agreement to acquire Sunrise Senior Living from Canada’s Public Sector Pension Investment Board. Sunrise’s senior leadership team, led by Chief Executive Officer Jack Callison Jr., will also buy a minority stake in the company.
The transaction, valued at $1 billion according to The Wall Street Journal, is set to close in 2027, subject to customary regulatory approvals. J.P. Morgan Securities and Jones Lang LaSalle Securities will serve as advisors.
The deal also marks BDT & MSD Partners’ first investment in the senior housing sector. Up until now, the merchant bank targeted residential and hospitality properties across the U.S.
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PSP Investments first invested in Sunrise in 2014 and became its sole owner nine years later. The current team will continue to oversee management for the company’s portfolio.
Sunrise Senior Living opened in 1981 in Virginia, where it’s still headquartered today. The company includes a third-party management business and an joint venture investment platform, also having a development pipeline of more than 50 communities worth about $7.5 billion.
Sunrise provides independent, assisted living, memory care and skilled nursing services, as well as hospice coordination across more than 230 communities in the U.S. and Canada. Its national portfolio comprises 215 properties across 27 states and Washington, D.C., with most of them located in New Jersey (27), California (25), Virginia (22) and Illinois (21).
Senior housing M&As underscore the sector’s revival
After the complete turnaround of the senior housing sector’s fundamentals, mergers and acquisitions have become more frequent in recent years, driven by growing demand from an aging population, rising operating costs and opportunities for strategic expansion.
In March, Sonida Senior Living completed a $1.8 billion purchase of CNL Healthcare Properties. The transaction made Sonida the eighth-largest owner of U.S. senior living communities, with roughly 14,700 units in its portfolio.
Two months later, LCS acquired Vi Living, expanding its holdings to 130 communities in 29 states. Vi’s luxury brand was preserved as a distinct part of LCS and the former management team continues to oversee the properties’ daily operations.
