Apollo buys Niles senior living center for $33.6M

The sale comes as previous owner HCP dissolves its partnership with Brookdale Senior Living

Leon Black and Brookdale Niles
Leon Black and Brookdale Niles

Apollo Global Management bought a Niles senior independent living center for $33.6 million.

New York-based Apollo acquired the Brookdale Niles complex, 8975 West Golf Road, from HCP, a national senior living and skilled nursing facility investor. The deal closed Oct. 1, according to Cook County property records.

Apollo will take over as the operate/lessee of the property, according to a mortgage taken out for the purchase. HCP owns eight senior living centers in the Chicago area, with three being operated by Brookdale Senior Living, according to the company’s website.

The sale aligns with HCP’s larger strategy of stepping back from its partnership with Brookdale, which operates a number of the facilities owned by Apollo, including the recently sold Niles location.

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Late last year, HCP and Brookdale announced a series of moves to dissolve their partnership. HCP sold six properties to Brookfield for $275 million, while Brookdale sold its 10 percent interest in two HCP holdings back to the company for $99 million, according to a press release from HCP.

Keybank recorded two mortgages for the property, one for $201 million and another for $291 million for a total of $492 million. But the debt appears to be related to a national portfolio that HCP put up for sale in June, comprising 25 senior housing facilities, 11 senior housing triple-net facilities, four life-sciences buildings and one undeveloped parcel worth $652 million, according to recent SEC filings.

Apollo, on top of its property holdings, is also a commercial real estate investor. The company in 2017 refinanced a then-Kushner Companies-owned Downtown office tower with a $184 million loan.

That loan was the subject of a White House ethics investigation after Apollo executives met with Jared Kushner is his capacity as a White House aide before providing several loans.