TOLEDO, Ohio - Welltower Inc. (NYSE: NYSE:WELL), a prominent real estate investment trust, has entered into a definitive agreement to acquire a portfolio of 25 active adult communities from Affinity Living Communities for a total of $969 million. This strategic move aims to expand Welltower's Wellness Housing portfolio, particularly in the Pacific Northwest, where there is a high projected growth rate for the population aged 55 and over.
The portfolio includes nearly 3,900 units, with the acquisition expected to be funded by cash on hand and the assumption of $523 million in below-market rate debt. The interest rate on this debt averages 3.8%, and it carries a nine-year weighted average maturity. Welltower anticipates closing the transaction in stages over the coming months, subject to property-level loan assumption approvals.
The purchase price, approximately $249,000 per unit, does not account for the value of the below-market debt and is considered a significant discount to replacement cost, given the portfolio's average age of less than eight years and high amenity offerings. Affinity's communities are known for their extensive amenity space, which exceeds industry averages, and for fostering a strong sense of community through resident-led programming.
Darin Davidson, President of Affinity, expressed pride in the partnership with Welltower, which aligns with their mission to create thriving communities for engaged residents. Shankh Mitra, CEO of Welltower, also praised the partnership, highlighting the shared values and the importance of wellness-focused rental housing for seniors.
This acquisition will grow Welltower's Wellness Housing portfolio to nearly 25,000 units. The portfolio boasts high operating margins and a lower capital expenditure burden, with average monthly rents at $2,100 and residents typically staying nearly four years.
Welltower, headquartered in Toledo, Ohio, is a REIT that plays a significant role in the transformation of healthcare infrastructure, investing in real estate necessary to scale innovative care delivery models.
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