HCP expects to record a gain of approximately $165 million on the sale of the assets to the Blackstone/Brookdale JV. The REIT intends to use the proceeds primarily to pay down debt and for general corporate purposes.

Brookdale's president and CEO, Andrew Smith, said this past November that the HCP transactions, which also included lease terminations on 25 properties triple-net leased to Brookdale, represented “meaningful steps in our ongoing portfolio optimization initiative. Through these transactions, we expect that we will improve our return on invested capital, significantly improve our cash flow, reduce lease leverage and improve the coverage of the remaining HCP leased portfolio. We appreciate the working relationship we have with HCP in bringing these transactions to fruition.” Brookdale will continue to operate 204 properties on HCP's behalf.

KeyBank Real Estate Capital's healthcare platform provided a $703-million financing package to the Blackstone-led JV to help fund the acquisition of the portfolio. It's comprised of 5,973 units of varying care types located across 19 states.

The financing package, consisting mainly of a Fannie Mae credit facility, allows the JV to access immediate loan proceeds for the acquisition and provides future financing capacity based on performance of the underlying assets. Charlie Shoop of KeyBank's commercial mortgage group led the financing team for the Fannie facility, while Peter Trazzera of KeyBank's healthcare group led the financing team for the bank's balance sheet.

Hear the latest on Net Lease at RealShare's event on April 5-6 in New York City at the Essex House. Learn more here.

NASHVILLE–Brookdale Senior Living Inc. said Thursday it had closed on its deal with the Blackstone Group to take a 15% interest in a joint venture that acquired a triple-net portfolio from HCP Inc. HCP closed on the 64-property sale, first announced this past November, on Wednesday.

Affiliates of Blackstone Real Estate Partners VIII paid $1.125 billion to acquire the portfolio, formerly leased to Brookdale, from Irvine, CA-based HCP. Brookdale will manage the 64 properties, which total 5,967 units, on behalf of the JV, and has contributed a total of $180 million to buy its 15% stake, terminate leases and fund its share of closing costs.

At HCP, CEO Tom Herzog says the sale represents “another significant step toward executing on our strategic priorities of reducing Brookdale concentration, improving lease coverage and strengthening our balance sheet and credit profile. We value our relationships with Brookdale and Blackstone, and look forward to continuing to work with them.”

For HCP, the Blackstone deal and other transactions reduced Brookdale exposure from 35% of cash NOI to 27%. Simultaneous with announcing the deal with Blackstone last fall, HCP said it would also transfer eight expiring Brookdale leases, including four on properties in Texas and four on Florida communities, to 90/10 RIDEA JV structures.

HCP expects to record a gain of approximately $165 million on the sale of the assets to the Blackstone/Brookdale JV. The REIT intends to use the proceeds primarily to pay down debt and for general corporate purposes.

Brookdale's president and CEO, Andrew Smith, said this past November that the HCP transactions, which also included lease terminations on 25 properties triple-net leased to Brookdale, represented “meaningful steps in our ongoing portfolio optimization initiative. Through these transactions, we expect that we will improve our return on invested capital, significantly improve our cash flow, reduce lease leverage and improve the coverage of the remaining HCP leased portfolio. We appreciate the working relationship we have with HCP in bringing these transactions to fruition.” Brookdale will continue to operate 204 properties on HCP's behalf.

KeyBank Real Estate Capital's healthcare platform provided a $703-million financing package to the Blackstone-led JV to help fund the acquisition of the portfolio. It's comprised of 5,973 units of varying care types located across 19 states.

The financing package, consisting mainly of a Fannie Mae credit facility, allows the JV to access immediate loan proceeds for the acquisition and provides future financing capacity based on performance of the underlying assets. Charlie Shoop of KeyBank's commercial mortgage group led the financing team for the Fannie facility, while Peter Trazzera of KeyBank's healthcare group led the financing team for the bank's balance sheet.

Hear the latest on Net Lease at RealShare's event on April 5-6 in New York City at the Essex House. Learn more here.