Diversified Healthcare Trust forms $703m JV

Diversified Healthcare Trust (DHC) has entered into a $703 million joint venture for 10 properties in DHC’s Office Portfolio segment with two global institutional investors.

The investors acquired a 41 percent and 39 percent equity interest in the joint venture for an investment of approximately $100.7 million and $95.8 million, respectively, and DHC retained a 20 percent equity interest in the joint venture. The joint venture incurred approximately $456.3 million of secured debt on the properties. The results of operations of the joint venture will be deconsolidated, and DHC’s remaining 20 percent equity interest will be accounted for using the equity method.

These Office Portfolio segment properties contain an aggregate of approximately 1.1 million square feet and are located in five states. The 10-property portfolio is being sold at approximately $657 per square foot, or a 4.98 percent capitalization rate based on full year 2021 actual cash NOI. As of September