The “big” news in the seniors housing market was the announcement at the end of July that Brookdale Senior Living (NYSE: BKD) had entered into an agreement to sell 44 properties with 1,874 assisted living and 579 memory care units located in 12 states. The price is about $252.4 million, which comes to $102,900 per unit. Brookdale had previously announced plans to sell between 50 and 100 properties, and with this deal they are well on their way to accomplishing this goal. Since they would not be selling their best performing assets, it makes sense that the pricing would be well below the 2015 average price of $189,200 per unit, but it was also well below the lower quartile price of $141,000 per unit in 2015. Annual revenues for this Brookdale portfolio are about $89 million, so the price to revenue is 2.7x compared with the 2015 average of 3.6x for assisted living, so this makes sense. But occupancy was a low 79%, or 1,000 basis points below the national average and 700 basis points below Brookdale’s assisted living average. The transaction is not expected to close until the end of the year.
Big news from Brookdale
