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Health Care REIT Expands Portfolio

By Gabriel Circiog, Associate Editor

Ohio-based Health Care REIT Inc. has acquired a 192-unit senior housing development in Lake Barrington for $81.7 million from a joint venture between Senior Lifestyle Corp. and Walton Street Capital LLC, ChicagoRealEstateDaily.com reports. The complex is one of 19 properties that Health Care REIT acquired in a recent $459 million sale/leaseback deal with Chicago-based Senior Lifestyle. Chicago-based private equity firm Walton Street was Senior Lifestyle’s partner in seven of the 19 properties sold to Health Care REIT.

Located at 22320 Classic Court, Lake Barrington Woods offers both independent and assisted living services to senior citizens. The complex is 96 percent leased and will continue to be operated like all the properties sold to Health Care REIT—by Senior Lifestyle. The development features private studio, one- and two-bedroom apartments. Amenities include a beauty and barber shop, personalized care plans with 24-hour staffing, an emergency response system and housekeeping and maintenance services.

Health Care REIT earlier this year acquired another two senior housing projects in the city. The real estate investment trust also increased its market share in the senior housing sector with the recent purchase of Sunrise Senior Living Inc. and its portfolio, which includes 125 properties. The Sunrise Senior Living Inc. portfolio is now valued at $3.2 billion.

Jeff Theiler, an analyst at Green Street Advisors Inc.—a Newport Beach, Calif.-based research firm, told the same source that the health care sector has seen a trend of consolidation of ownership, as the three major REITs—Health Care REIT, Ventas Inc. and HCP Inc.—have a major advantage compared to other investors in the market.

The REITs require much lower returns on investment than competitors, such as private-equity firms, and are able to afford to pay more per purchase. This is mainly due to the low interest rates and the ability to sell stock at premiums over the value of the assets underneath.

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Image Courtesy of: www.seniorlifestyle.com