Brookdale inks $1.2B joint venture with HCP

Senior living company and REIT to operate 14 care campuses

Brentwood-based Brookdale Senior Living announced Wednesday a joint venture with Long Beach, Calif-based HCP to own and operate 14  retirement community campuses for $1.2 billion. 

Additionally, Brookdale and HCP, a real estate investment trust, have agreed to amend leases on 202 HCP-owned senior housing communities currently operated by Emeritus Senior Living, which Brookdale earlier this year said it plans to acquire

Primarily located in Florida, the 14-campus portfolio includes 7,000 units across independent living, skilled living, assisted living and memory care. Brookdale and HCP will own 51 percent and 49 percent, respectively. 

"We are very excited about strengthening our relationship with HCP as we partner to create an industry leading entry fee [continuing care retirement community] joint venture," Andy Smith, Brookdale CEO, said in a release detailing the agreement. "Combining the capital strengths of HCP with Brookdale's operating platform forms a compelling investment vehicle of our existing entry fee CCRCs and provides for growth in this fragmented asset class."

Smith also said that the lease amendments should improve the projected benefits of the February $2.8 billion Emeritus deal, which is expected to close in the third quarter of 2014. The JV transactions are expected to take place after Emeritus closes.

Shares of Brookdale (Ticker: BKD) ended trading Wednesday at $31.34, down 1.3 percent on the day. Year to date, they're up 15 percent.