Brookdale Agrees to Sell Brookdale Battery Park; Will Continue to Manage the Premier Manhattan Community Following Closing
NASHVILLE, TN–Brookdale Senior Living Inc. (NYSE : BKD ) (“Brookdale” or the “Company”) announced today that it has entered into a definitive agreement to sell its Brookdale Battery Park independent living community for approximately $194 million to Ventas, Inc. (“Ventas”). The price represents a cap rate of approximately 5%.
Ventas has selected Brookdale to manage the community under a separate management agreement following the closing of the sale. This prime real estate, located in downtown Manhattan, is a well-established senior housing community with strong community leadership and high occupancy.
“I am pleased with this continued progress in delivering on our real estate strategy, which we introduced earlier this year,” said Lucinda (“Cindy”) 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 Company expects the proceeds from the sale of this community to be approximately $140 million, net of associated debt and transaction costs and that the transaction will close by year-end 2018. However, the sale remains subject to customary closing conditions and there can be no assurance whether or when the closing will occur.
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, which the Company expects will generate aggregate proceeds in excess of $250 million, net of associated debt and transaction costs. Brookdale Battery Park was included in the Company’s assets held for sale as of June 30, 2018.
Brookdale was represented by HFF as broker in the sale of this community.