Brookdale is paring down its inventory in an agreement to sell 44 properties across 12 states to an undisclosed buyer. The deal includes nearly 2,500 units, including 579 memory care units and 1,874 assisted living units.
Brookdale President and CEO Andy Smith calls it a “portfolio rationalization initiative to simplify our business model and divest communities that do not fit with our strategy.” that plans to release 44 communities across 12 states. “We expect to use the proceeds of the transaction to primarily repay debt in another step towards deleveraging the balance sheet,” he said in a corporate release.
The company has been on a rough integration road since its 2014 acquisition of Emeritus, which had expanded the company’s holdings by two-thirds practically overnight. The 44-property portfolio in the sale deal had an average occupancy rate of 79 percent in first quarter 2016, the company noted.
The deal is expected to close by the end of 2016. Brookdale has not released the name of the buyer.