HCN Forms JV With Forest City

Health Care REIT Inc. (HCN: 42.63 0.00 0.00%), a real estate investment trust (REIT) that operates senior housing and health care real estate, has recently formed a joint venture with Forest City Enterprises Inc. (FCE.A), a premier real estate company in the U.S., to purchase a $668 million life sciences campus in University Park in Cambridge, MA. 

According to the terms of the deal, Health Care REIT would acquire a 49% stake in Forest City’s seven life sciences buildings adjacent to the Massachusetts Institute of Technology. The company would invest $170 million for the project, and the JV would assume $320 million in secured debt on the buildings, which are currently 100% leased. 

Headquartered in Toledo, OH, Health Care REIT invests across the full spectrum of senior housing and health care real estate properties. The company provides senior housing operators and health care systems with a single source for facility planning, design and turn-key development, property management, and monetization or expansion of existing real estate. 

Health Care REIT is continually investing in assisted and independent living facilities as demand for these facilities is set to increase with an aging Baby Boomer generation. Furthermore, the healthcare sector is one of the more recession-proof real estate sectors and has persistently fared comparatively better than other sectors during the commercial real estate downturn. This offers a strong upside potential for the company.