TOLEDO, OH - Welltower announced that is has acquired five purpose-built, private pay seniors housing properties recently developed and managed by Sunrise Senior Living. Welltower previously funded 34% of the development cost for the communities through its joint venture and ownership of Sunrise Senior Living.
The five communities were opened in 2017 and 2018, and upon acquisition had an occupancy of 67%. The communities are located in dense infill locations within the Washington, D.C., San Francisco and San Diego metropolitan areas and are leasing up rapidly. Two communities are eight and nine story mid-rise buildings in the affluent Washington D.C. submarkets of Chevy Chase and Bethesda. The remaining three communities represent the latest in Sunrise's mansion prototype and are the product of multi-year entitlement periods. Welltower's investment in the properties is $285 million. Sunrise will continue to manage the communities under an incentive-based management contract.
"Welltower's purchase of these five newly developed communities in prized locations further solidifies our standing as the largest owner of premier seniors housing properties in the United States," said Welltower Chairman and CEO, Thomas J. DeRosa. "The acquisition of these assets further enhances our already high quality Sunrise portfolio and reinforces our commitment to this best-in-class operator."
"These state-of-the-art senior living communities are the result of our more than 35 years of expertise in identifying and developing on the best sites for bringing our world-class brand and top quality care to more seniors," said Sunrise CEO Chris Winkle. "We are pleased to have the opportunity to collaborate further with Welltower on these five outstanding communities, expanding our relationship that now spans over 180 communities in the United States, United Kingdom, and Canada."