Diversified Healthcare Trust entered into a new management agreement with Utah-based Stellar Senior Living for nine skilled nursing communities, the REIT announced Monday.
It also includes one continuing care retirement community which totals 1,152 units in Colorado, Texas and Wyoming within its Senior Housing Operating Portfolio.
The deal is part of DHC’s plan to close and repurpose 1,500 skilled nursing units that were previously managed by Five Star Senior Living.
Additionally DHC announced it would sell 10 skilled nursing bed licenses, as the REIT eventually plans to sell 542 licenses, according to the release.
Five Star announced in April that it would exit the skilled nursing business as part of a wider plan to trim its footprint and instead focus on independent living and active adult properties.
The Newton, Mass.-based operator previously said it would close or transition all 1,500 of its skilled nursing units by the end of 2021.
The most recent deal brings total new management agreements to about 70% of the transitioning facilities.
At the end of March DHC’s $8.2 billion portfolio includes 396 properties in 36 states and Washington, D.C., according to the release.
Companies featured in this article:
Diversified Healthcare Trust, Five Star Senior Living, Stellar Senior Living
