Investment fund cashing out of big Brookdale stake

NY firm helped build company's national platform since first investment 14 years ago

The New York investment titan that has backed Brookdale Senior Living for more than a decade on Tuesday said it will sell all of its shares in the Brentwood-based company.

Fortress Investment Group, which manages more than $62 billion all around the world, plans to bring to market its 19.4 million shares of Brookdale, which amount to about 15 percent of the company. The sale will generate some $640 million for Fortress, which first invested in Brookdale in May 2000. Since then, Brookdale has pulled off a series of acquisitions — including the $1.2 billion acquisition in 2005 of American Retirement Corp. — and positioned itself to be the first truly national brand in the senior living sector.

Shares of Brookdale (Ticker: BKD) were down a little more than 1 percent to $32.75 in after-hours trading Tuesday and are up about 20 percent so far this year.

When investment bank Morgan Stanley wraps up the offering, Fortress executives Wes Edens, who was Brookdale's chairman from mid-2005 to June 2012, and Randal Nardone, who was named to the board in 2011, will resign their seats.

For the prospectus supplement detailing Fortress' offering, click here.