NEW YORK CITY–Brookdale Senior Living Inc. has signed a definitive agreement to sell its Brookdale Battery Park senior property here to Chicago-based Ventas, Inc. in a deal valued at approximately $194 million.

The 14-story Downtown Manhattan property contains 217 senior independent living units and has been operated by Brookdale for nearly 20 years. Nashville, TN-based Brookdale Senior Living will continue to manage the property after the closing on the sale, which is expected before the end of this year. Brookdale Senior Living was represented by HFF as broker in the sale of the property.

The acquisition is valued below replacement cost and represents an approximate 5% cap rate with redevelopment opportunities offering additional potential upside, Ventas states in an announcement released today.

“The Battery Park acquisition firmly establishes Ventas as the market leader in seniors housing in the elite Manhattan market,” says Debra A. Cafaro, Ventas chairman and CEO. “Battery Park adds an irreplaceable, well-established community to our high-quality seniors housing portfolio and is uniquely positioned to benefit from New York City's strong demographics.”

Brookdale Senior Living expects the proceeds from the sale of the Battery Park senior property to be approximately $140 million, net of associated debt and transaction costs.

“I am pleased with this continued progress in delivering on our real estate strategy, which we introduced earlier this year,” says Lucinda Baier, Brookdale's president and CEO. “I am thrilled that we will continue to operate Battery Park after closing, as we have since the community opened in 2000, and thank Debra Cafaro and the Ventas team for their continued partnership and another mutually-beneficial transaction.”

The sale of Brookdale Battery Park is a significant component of the company's previously announced plan to market in 2018 and sell 28-owned communities. The disposition program is expected to generate aggregate proceeds in excess of $250 million for Brookdale.

Brookdale Battery Park was included in the company's assets held for sale as of June 30, 2018.

In April, Ventas and Brookdale Senior Living entered into definitive agreements to restructure the leases of Brookdale's portfolio of 128 communities with Ventas.

Instant Insights /

Brookdale to Sell Battery Park Senior Housing Complex for $194M

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