HCP and Brookdale Senior Living have struck a deal regarding HCP's 15-campus CCRC JV and triple-net portfolio with Brookdale. The deal will allow improve operator diversification, acquire Brookdale's interest in 12 CCRC campuses and strengthen the remaining Brookdale triple-net portfolio.

The transactions have several components, including HCP acquiring Brookdale's 51% joint venture interest in 12 entry fee CCRCs with 5,641 units for $510 million, giving HCP a 100% interest, and Brookdale to acquire 18 triple-net leased properties from HCP for $405 million, representing a 7.4% lease yield on trailing twelve month rent as of June 30, 2019.

These 18 triple-net leased properties had a 0.86x rent coverage after management fee as of June 30, 2019 These transactions are expected to reduce HCP's Brookdale concentration from 16% to 8% of cash NOI on a pro forma basis.