Healthcare REIT Ventas announced Brookdale Senior Living has partially extended the current master lease between the two companies, with mutually beneficial agreements reached.

As part of the agreement, Ventas plans to convert 44 select large-scale senior housing communities to its Senior Housing Operating Portfolio (SHOP) platform, while providing a 38% cash rent increase on 65 communities, with a 10-year lease extension.

Additionally, a total of 11 communities are intended to be sold in 2025. The master lease with Brookdale was originally set to expire on Dec. 31, 2025. “These mutually beneficial agreements allow for more certainty and successful execution, benefit residents and their families and enable Ventas to expand our participation in the unprecedented opportunity in senior housing,” said J. Justin Hutchens, Ventas EVP.

Brookdale separately announced that the amended triple-net master lease arrangement is expected to increase its near- and long-term cash flows significantly. The Ventas lease amendment is expected to improve the senior living communities operator’s 2025 cash flows by more than $15M.

Ventas Inc. bought the four-story assisted living facility Camellia at Deerwood at 10061 Sweetwater Parkway for $27.4 million from Chicago Pacific Founders. Both are Chicago-based companies. The property adds to Ventas’ 800-plus senior housing communities, including five in Jacksonville.

The buyer invests in assets that support the aging population, including senior housing, outpatient medical and research, triple-net health care and institutional private capital management.

In Jacksonville, Venta’s five senior housing assets are — Brookdale Avondale at 4455 Merrimac Ave., Brookdale Crown Point at 10050 Old Saint Augustine Road, Sunrise of Jacksonville at 4870 Belfort Road, Sodalis Jacksonville at 7620 Timberlin Park Road and Discovery Commons San Pablo at 14199 William Davis Parkway.

Commercial Edge reports Camellia at Deerwood last sold in 2017 for nearly $40 million. The property was valued at $25.95 million for this year.

Jasmine Kilman is Content Director of Connect Commercial Real Estate, covering Chicago and greater Chicagoland, the Midwest, Seattle, and the Pacific Northwest. She covers industry trends, transaction deals, market research, and produces daily news stories.
With experience in marketing and communications for academic nonprofits and corporate clients, including Hearst Media, Hilton, and Coldwell Banker, Kilman has written about commercial real estate, environmental, social, and corporate governance (ESG), technology, healthcare, and philanthropy. She was born and raised in California and graduated with a degree in public relations. In her spare time, Kilman enjoys hiking and traveling to new locations with her family.