Overview
Ventas Inc. (Ventas) – a Chicago-based real estate investment trust (REIT) – effected a restructuring of master lease arrangements for approximately 120 Brookdale Senior Living (Brookdale) communities, encompassing 10,000+ units, in a move meant to address the impact of the COVID-19 (coronavirus) pandemic on the senior living industry.
In exchange for a $500 million total rent reduction for Brookdale through 2025, Ventas received Brookdale warrants, a $45 million note, and over $150 million in cash. The deal also included the transfer to Ventas of five properties, which Brookdale will manage, satisfying a previous $78 million loan from the REIT.
"We are pleased to reach mutually beneficial agreements with Brookdale that address the financial impact of the unprecedented COVID-19 pandemic on our senior living communities," Debra A. Cafaro, Ventas chairman and CEO, said in the company's statement.
Barack Ferrazzano represented Ventas in the restructuring of lease arrangements with a team lead by Real Estate and Corporate & Securities partners Joseph D. Lambert, Douglas W. Anderson, and James R. Whitney, with assistance by associates Ashley B. Mahoney and Sindhoo Nackeeran. Tax and business matters were handled by Michael J. Towne.
To learn more, visit:
- https://www.law360.com/realestate/articles/1295577/3-firms-guide-brookdale-ventas-lease-restructuring-deal
- https://seniorhousingnews.com/2020/07/27/ventas-restructuring-gives-brookdale-500m-rent-savings-over-5-years/
About Ventas Inc.
Ventas, an S&P 500 company, operates at the intersection of two powerful and dynamic industries – healthcare and real estate. As one of the world’s foremost Real Estate Investment Trusts (REIT), Ventas uses the power of capital to unlock the value of real estate, partnering with leading care providers, developers, research and medical institutions, innovators, and healthcare organizations whose success is buoyed by the strong demographic trends of an aging population and increased life expectancy.
To learn more, visit: https://www.ventasreit.com/about-ventas