Welltower Buys Pacific Northwest Senior Living Portfolio for Almost $1B

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Affinity Living Communities has sold off 25 properties in the Pacific Northwest, raking in almost $1 billion.

The senior living housing developer sold the portfolio to health care real estate investment trust (REIT) Welltower (WELL) for $969 million, a major investment in the region for the buyer, according to Welltower

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Welltower announced the acquisition in its earnings report for the fourth quarter of 2023, during which the company also stated a belief that health care properties would continue to experience tailwinds throughout 2024 as the population above 55 is expected is grow more than 2.5 times faster than the U.S. average over the next five years.

“Our ‘Wellness Housing’ portfolio helps address the significant and growing unmet demand for wellness-focused rental housing for seniors,” Shankh Mitra, CEO of Welltower, said in a statement. “These communities provide thoughtful amenities and targeted social programming for empty nesters and active adults at moderate price points.” 

The portfolio included about 3,900 senior living apartments that sold for about $249,000 per unit, according to Welltower. The average monthly rent is $2,100 and residents stay on for about four years. The properties also include a total of 30,000 square feet of amenity space

But Affinity isn’t totally out of the equation with the deal considered a “long-term strategic partnership.”

“This transaction and partnership with Welltower mark a milestone in our company’s history,” Darin Davidson, president of Affinity, said in a statement. “The Welltower partnership will enable us to enhance and extend our ability to execute our mission of creating thriving communities in which our engaged residents live full and happy lives.”

Welltower assumed $523 million of debt from the seller with an interest rate of 3.8 percent and a nine-year weighted average maturity, according to Welltower. It’s unclear who brokered the sale.

Mark Hallum can be reached at mhallum@commercialobserver.com.