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Ventas and Brookdale Leases: Will Sales Follow?
The Chicago-based Ventas Inc. entered into a definitive agreement with Brookdale Senior Living to restructure a 128-property portfolio. The communities currently operate under triple-net leases, and the new agreement combines all of Ventas’ wholly-owned Brookdale assets into one master lease and security agreement.
Under the terms, the portfolio’s master lease has an initial term through Dec. 31, 2025. The agreement provides for total rent of approximately $175 million for 2018, and an estimated total rent of approximately $177 million in 2019. Both years will include a rent credit of $8 million.
The deal also gives Ventas the option to end its leasehold interests, and remove specific communities with yearly base rent aggregating up to about $30 million. The means Ventas is free to sell up to 15% of its Brookdale assets.
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