Brookfield Asset Management Buys Senior Living Portfolio for $664M

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Brookfield Asset Management has made a big push into senior living space with a $664 million purchase of Sunrise Senior Living’s 32-property portfolio.

Healthpeak Properties sold the 3,235-unit portfolio that spans the country, including two in Brooklyn. Crain’s New York Business first reported a Sheepshead Bay, Brookyn, location sale on Tuesday, and The Real Deal confirmed that Brookfield was the buyer of the entire portfolio.

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Healthpeak announced that it would sell its $2.5 billion senior housing operating portfolio and triple-net senior housing assets in February, TRD reported. Soon after, Brookfield purchased two Sunrise Senior Living communities in Seattle for $28 million, but Brookfield wasn’t named as the buyer of the entire portfolio, TRD reported. 

The portfolio includes the $36 million purchase of the 189-bed 2211 Emmons Avenue in Sheepshead Bay, Brooklyn, and the $31.1 million purchase of Sunrise Senior Living’s 142-bed Mill Basin, Brooklyn, location at 5905 Strickland Avenue, according to TRD

Brookfield is a fan of the senior-housing sector due to such demographic trends as “an aging population … increased life expectancy and the related growing need for specialized care, such as memory care for people with dementia. These trends should help sector occupancy and profitability — and we are already seeing them translate into strong private-market demand for senior-housing properties,” it wrote in a letter to investors in October 2020.

The firm also believes the coronavirus pandemic is only temporarily challenging the senior living industry, and that a recovery would boost share prices. 

Brookfield, Healthpeak and Sunrise did not immediately respond to requests for comment.

Celia Young can be reached at cyoung@commercialobserver.com.