Welltower has plans to form a long-term strategic partnership with Affinity Living Communities, a vertically integrated developer and operator of age-restricted and age-targeted Wellness Housing. Welltower is under contract to acquire a portfolio of 25 purpose-built active adult communities for $969 million through a privately negotiated, off-market transaction and also expects to enter into a long-term programmatic development agreement with Affinity.
The portfolio encompasses nearly 3,900 units predominately concentrated in the Pacific Northwest. The acquisition will enable Welltower to strategically scale the geographic reach of its Wellness Housing portfolio into markets with a projected five-year 55-and-older population growth more than 2.5 times higher than the U.S. average. Post-closing, the portfolio will continue to be managed by Affinity, subject to a terminable and aligned management contract.
The acquisition is expected to be funded through cash on hand and