Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the multifamily market, click here.)

SAN DIEGO-Chicago-based Brookdale Senior Living Inc. makes another aggressive play with its agreement to acquire a $237-million portfolio from AEW Capital Management. The portfolio is made up of eight senior living communities in California, Washington, Ohio and New Jersey and totals 1,172 units.

Representatives from Brookdale and AEW were not available for comment, but a broker from the San Diego office of CB Richard Ellis, who represented AEW in the transaction, describes the deal as extremely complex. Lisa Widmier, senior vice president of the CB Richard Ellis Senior Housing Services Group, which includes David Rothschild and Mary Christian, says the deal was made more complex because it “involved different community types across different regions of the US” and AEW was seeking a single buyer. Previously, five operators managed the eight communities. All properties will now be managed in-house by Brookdale.

The properties in the portfolio range from stand alone assisted living facilities to larger communities, including multi-use facilities that encompass assisted living, Alzheimer’s care and a continuing care retirement community. The four California properties include Glenwood Gardens in Bakersfield; Pacific Gardens of Tarzana; Pacific Gardens of Santa Monica and The Gardens of Hillsborough Village in Chino. The two New Jersey communities include Castle Senior Living at Florham Park and Castle Senior Living at Forsgate. The remaining communities include Foundation House at Federal Way in Washington, DC and the Fairways in Wickliffe, OH.

Earlier this summer, Brookdale entered into an agreement to purchase Nashville-based American Retirement Corp. for $1.2 billion in cash or $33 per share. Per the agreement of that deal, following the completion of the acquisition, American Retirement will become a wholly owned subsidiary of Brookdale. The combined company will operate a total of 73 independent living facilities with more than 13,750 units; 413 assisted living homes with approximately 21,640 beds; and 49 continuing care retirement communities with 14,680 units/beds.

According to a company statement, Brookdale has purchased or announced commitments to purchase $788.6 million in senior housing assets since its IPO in November 2005. That is not including its purchase of ARC. These acquisitions represent 107 facilities and 9,495 units/beds. Brookdale expects to invest approximately $327.8 million in equity in these transactions.

Brookdale’s stock closed yesterday at $43.40, down from its opening at $43.60 on a volume of 336,800 shares. The firm’s first quarter numbers, which were released in May, show an adjusted EBITDA of $26.9 million compared to $27 million in fourth quarter 2005. Funds from operations came in at $13.3 million, or 20 cents per share, compared to $10.9 million, or 17 cents per share, during the fourth quarter.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


GlobeSt. Multifamily Spring 2022 (Formerly APTS)Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.