Aging Well: News & Insights for Seniors and Caregivers
- Brookdale Senior Living is the nation’s largest senior living provider, pursuing a strategy to own more real estate and exit long-term leases.
- Brookdale will raise its share of owned units to about 77%, leaving only four long-term lease portfolios remaining.
- The communities encompass 735 units of assisted living and memory care across four states.
- Transition will save about $11 million in 2027 cash rent, boosting adjusted EBITDA; financing extends mortgage maturities at favorable fixed rates.
Brookdale Senior Living (NYSE: BKD) is acquiring the real estate of 17 communities that the company currently leases, for an approximate price of $157 million. Brookdale also has obtained $249 million of fixed-rate mortgage financing, which the provider will use to address all remaining mortgage debt maturities until 2028.
The Brentwood, Tennessee-based company is the largest senior living provider in the nation and has been pursuing a strategy to own more real estate and exit long-term leases.
“ … It feels really good at this very moment that we own the predominance of our real estate, that we can own our own destiny, and we can really gain the value of our efforts to our shareholders and to our company,” Brookdale CEO Nick Stengle told Senior Housing News in a recent SHN+ TALKS appearance.
This latest transaction is part of this ongoing effort. Brookdale’s portfolio included 541 communities across 41 states as of June 30, 2026. With this deal, Brookdale increases its share of owned units to about 77%.
“Upon closing this acquisition, Brookdale will only have four long-term lease portfolios remaining, and the remaining leased portfolio in aggregate is producing positive cash flow,” Stengle stated in a press release issued Wednesday.
The 17 communities involved in the transaction encompass 735 units, which are a mix of assisted living and memory care. The properties span four states.
The deal is expected to close in the fourth quarter of this year and will be funded with non-recourse mortgage financing and cash on hand. The transition away from leases will save Brookdale about $11 million in 2027 annual cash rent payments, which will translate to a “commensurate” increase in adjusted EBITDA, according to the press release.
Brookdale obtained the $249 million financing under its existing Master Credit Facility with Fannie Mae through JLL Real Estate Capital. With the proceeds, Brookdale repaid $244 million in mortgage debt set to mature next year.
The $249 million tranche bears interest at a fixed rate of 6.16% and matures in 2031. The Master Credit Facility also includes $179 million of mortgage debt due in 2031 and $340 million of mortgage debt due in 2032.
“Demonstrating our continued proactive management of Brookdale’s balance sheet, we completed another beneficial financing transaction within this broader loan portfolio to address all remaining 2027 mortgage debt maturities at a favorable fixed rate,” CFO Dawn Kussow stated in the press release. “We are pleased to extend these maturities, and we are grateful to Fannie Mae and JLL for their ongoing partnership.”
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