Welltower Restructures Brookdale Senior Living JV

A Brookdale Senior Living facility. Photo by Brookdale.

TOLEDO, OHIO–In a series of moves, Welltower is restructuring its joint venture agreement with Brookdale Senior Living, transitioning a total of 63 assets to other operators, forming a new RIDEA (a structure allowed under the REIT Investment Diversification and Empowerment Act) joint venture with Pegasus Senior Living and expanding its relationship with Cogir Management Corp., a Canadian operator that is entering the US marketplace

Specifically the restructuring will transition 37 properties to be managed by Pegasus, which is a newly formed management group that will be headquartered in Dallas, Texas, and led by senior housing turnaround specialists Steven Vick and Chris Hollister. Another 12 properties will be managed by Cogir, which will invest $68.2 million for a 15% joint venture interest in the properties at a 5.75% cap rate. Eleven of the properties will be allocated among six existing Welltower operators. The remaining three properties, which are non-core asset in tertiary markets, will be sold.