Welltower Completes Billion-Dollar Senior Housing Buy

The firm acquired 18 properties in California, making it the largest owner of senior housing in the state.
Golden Gate in San Francisco is one of 18 senior housing properties Welltower acquired from Vintage Senior Living in California.

Golden Gate in San Francisco is one of 18 senior housing properties Welltower acquired from Vintage Senior Living in California.

Toledo, Ohio—Welltower Inc. has acquired a sizable senior housing portfolio (19 properties all together, mostly in California) totaling 2,590 units, for $1.15 billion. The deal adds to the company’s already large holdings on the West Coast. Now Welltower owns 114 health care properties in California, making in the largest owner of senior housing in the state.

MHN originally reported Welltower’s plan to acquire the portfolio in August.

“These properties are in attractive markets, including locations near San Francisco’s Golden Gate Park and Nob Hill, with a growing population of seniors, favorable supply-and-demand fundamentals and high barriers to entry,” said Scott Brinker, Welltower’s chief investment officer. “Welltower and its operating partners (have) significant opportunities to enhance the services offered at the properties.”

The portfolio includes a combination of assisted living, independent living and memory care units. Eighteen of the communities are located in California; one is in Tacoma, Wash. CBRE Capital Markets’ National Senior Housing team oversaw the deal, which totaled about $445,000 per unit.
CBRE Executive Vice President Matthew Whitlock, together with partners Lisa Widmier, executive vice president, and Aron Will, vice chairman, represented the sellers, affiliates of Vintage Senior Living and their private investor partners. “This transaction represents one of the most significant portfolios of institutional-grade senior housing platforms on the West Coast,” said Whitlock.

The portfolio will be operated by existing operating partners of Welltower Inc. Senior Resource Group will operate 11 of the communities, Sunrise Senior Living will operate seven of them, and Silverado will operate one. Previously, Vintage operated the facilities.

Welltower Inc. is the largest global health care REIT, focusing on senior living, post-acute care and outpatient medical services properties, especially in high-barrier-to-entry metro markets in the U.S. and the United Kingdom. In September, the REIT was added to the Dow Jones Sustainability Index (DJSI).