HCP to Buy Out Retirement Community Portfolio Stake for $510M

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IRVINE, CA—HCP and Brookdale Senior Living have struck multiple agreements that will ultimately improve HCP’s operator diversification and strengthen Brookdale triple-net portfolio, according to HCP’s CEO Tom Herzog.

HCP has agreed to buy out Brookdale’s 51% joint venture interest in 12 continuing care retirement communities for $510 million leaving HCP to fully own the 5,641-unit portfolio. HCP and Brookdale will also terminate the management agreements on the 12 CCRCs, after which HCP will transition management to Life Care Services. HCP will pay $100 million termination fee to Brookdale as part of this arrangement. Finally, HCP and Brookdale will market for sale the remaining three CCRCs in the existing joint venture.