Brentwood – October 13, 2026 -- Brookdale Senior Living (NYSE: BKD) agreed to buy the real estate of 30 communities it leases from Welltower for $290 million. The deal would cut 2027 annual cash rent by approximately $17.8 million and lift Brookdale's owned share of consolidated units to nearly 80%.
Brookdale closes $157M purchase of 17 formerly leased communities
Brookdale completed the previously announced acquisition on September 30 for approximately $157 million. The portfolio holds 735 assisted living and memory care units in Colorado, Kansas, Ohio and Texas.
The purchase eliminates approximately $11 million of annual cash rent in 2027 and raises Brookdale's owned share of consolidated units to approximately 77%.
Brookdale funded the deal with cash on hand and $108 million of non-recourse mortgage financing. The debt carries a variable rate of SOFR plus 215 basis points, with an initial five-year term and extension options for two additional years.
Welltower agreement covers 1,152 units across 13 states
The 30-community portfolio comprises 1,152 assisted living and memory care units in 13 states. It carries approximately $17.8 million of annual cash rent for 2027, split between approximately $11 million of operating rent and approximately $7 million of financing rent. The lease would otherwise have matured in 2032.
Brookdale expects the transaction to close in the fourth quarter of 2026, subject to customary closing conditions. It plans to fund the purchase with cash on hand and non-recourse mortgage debt. The company expects the deal to increase Adjusted EBITDA and Adjusted Free Cash Flow.
Welltower lease on 39 communities extends four years to June 2036
Contingent on closing the 30-community acquisition, Brookdale and Welltower will amend a cash flow positive lease covering 39 communities with 1,842 units. The lease would run to June 2036 instead of June 2032. Its 2027 annual cash rent is approximately $36.6 million. It would become Brookdale's only remaining lease with Welltower.
The amendment also changes the lease's fair market value purchase option. Brookdale can currently exercise it only immediately before the 2032 maturity. Under the amendment, Brookdale could exercise it at any time during the lease, subject to a floor of a 6.5% yield on in-place rent. All other lease terms remain unchanged.
CEO ties ownership to operating upside
CEO Nick Stengle said ownership lets Brookdale capture "the full benefit of future operating growth" while reducing long-term lease obligations. He said both transactions are expected to be accretive to Adjusted EBITDA and cash flow.