April 30, 2018 Comments Off on Ventas, Brookdale Reach New Master Lease Agreement Views: 345 Chicago News, Downtown

Ventas, Brookdale Reach New Master Lease Agreement

Chicago-based healthcare REIT Ventas has entered into a new agreement with tenant Brookdale Senior Living that combines the leases on 128 Ventas-owned properties into a single master lease. The simplified lease runs through 2025, with two 10-year renewal options.

Prior to the agreement, Ventas had nearly $170 million of its $180 million in Brookdale annual cash rent expiring by 2020. The Brookdale portfolio represents about 8% of Ventas’ annual NOI.

To optimize the portfolio, Brookdale and Ventas will pursue the sale of certain properties totaling up to $30 million in cash rent. Brookdale will receive a 6.25% rent credit on any asset sales.

Activist investor Land & Buildings Investment Management lauded the new agreement, saying in a statement that it “removes a key provision which, in our view, has prevented Brookdale from successfully pursuing strategic alternatives for years.”

Ventas announced the agreement when recently reporting its first-quarter results.

Read more at BusinessWire

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