Brookdale Senior Living has completed the acquisition of 17 previously leased senior living communities for approximately $157 million and entered into a separate agreement to acquire 30 additional leased communities from Welltower for $290 million.
Together, the transactions represent approximately $447 million in real estate acquisitions and advance Brookdale’s strategy to increase ownership of the communities it operates while reducing long-term lease obligations. The completed 17-community acquisition eliminates about $11 million in annual cash rent in 2027, while the planned Welltower acquisition is expected to eliminate an additional $17.8 million in annual cash rent.
The 17-community portfolio includes 735 assisted living and memory care units across Colorado, Kansas, Ohio, and Texas. Following the September 30 closing, Brookdale’s owned share of consolidated units increased to approximately 77%.
Brookdale funded the $157 million acquisition with cash on hand and $108 million of non-recourse mortgage financing. The debt carries a variable interest rate based on SOFR plus 215 basis points and has an initial five-year term with options to extend for an additional two years.
The company’s agreement with Welltower covers 30 senior living communities totaling 1,152 assisted living and memory care units across 13 states. Brookdale currently leases and operates the properties, which carry approximately $17.8 million of annual cash rent for 2027. The existing lease otherwise would have matured in 2032.
The $290 million Welltower transaction is expected to close during the fourth quarter of 2026, subject to customary closing conditions. Brookdale plans to finance the acquisition using cash on hand and non-recourse mortgage debt. Once completed, the transaction is expected to increase Brookdale’s consolidated share of owned units to nearly 80% and contribute positively to Adjusted EBITDA and Adjusted Free Cash Flow.
Brookdale and Welltower also agreed to amend a separate lease covering 39 communities and 1,842 units. Contingent on completion of the 30-community acquisition, the lease would be extended by four years through June 2036 and would become Brookdale’s only remaining lease with Welltower.
The 39-community portfolio is expected to generate approximately $36.6 million of annual cash rent payments in 2027. As part of the amendment, Brookdale would gain the ability to exercise its existing fair market value purchase option at any time during the lease term, rather than only immediately before the current 2032 maturity. The option would be subject to a floor based on a 6.5% yield on in-place rent.
Brookdale operates 529 communities across 41 states and had capacity to serve approximately 45,000 residents as of September 30, 2026. Its portfolio includes independent living, assisted living, memory care, and continuing care retirement communities.
KEY QUOTES:
“The completed acquisition of 17 communities and the agreement to acquire 30 communities from Welltower together represent another significant step forward in our strategy to own more of the real estate we currently operate. Ownership allows Brookdale to capture the full benefit of future operating growth, while reducing our long-term lease obligations. These transactions are expected to be accretive to Adjusted EBITDA and cash flow. The Welltower lease amendment also will provide valuable flexibility by giving Brookdale the right to exercise a fair market value purchase option at any time during the term of the lease, subject to a pre-negotiated floor.”
Nick Stengle, Chief Executive Officer Of Brookdale Senior Living
