Healthpeak Spinoff Scoops up Atlanta-Area Senior Housing

A newly minted senior housing real estate investment trust is establishing itself in metro Atlanta with a sizable bet on aging demographics.

An affiliate of Denver-based Healthpeak Properties paid $240 million for a pair of senior living communities in Cobb County at 3171 Dallas Highway in West Cobb and 4220 Lower Roswell Road in East Cobb, marking one of the first major acquisitions tied to its freshly launched spinoff, the senior-housing REIT Janus Living. The deal, recorded this month, includes the Sterling Estates properties in West and East Cobb and is part of a broader five-property, multi-state purchase.

The two communities — totaling hundreds of units — were acquired alongside three Orlando-area properties and will be folded into Janus Living’s initial portfolio. The Atlanta Business Chronicle reported that the REIT debuted this week after raising $878 million in net proceeds through an IPO, with a starting lineup of 34 communities and roughly 10,400 units.

The move formalizes a long-telegraphed pivot for Healthpeak to spin off its senior housing business into a standalone vehicle positioned to capitalize on a looming demand surge, according to the publication.

Company executives have zeroed in on Sun Belt markets like Atlanta, Houston and Orlando, where population growth and aging trends are expected to collide. In a recent securities filing, Janus cited projections showing the over-80 population in those regions could jump 42 percent between 2024 and 2029.

That demand is already outpacing supply growth, a dynamic investors are increasingly betting on. Development pipelines have thinned amid higher construction costs and financing challenges, according to the outlet, even as the baby boomer cohort begins to age into more care-intensive housing.

The Sterling Estates properties are characterized by newer construction, large campuses and historically strong occupancy, according to the publication. The communities reportedly operated above 90 percent occupancy in recent years, buoyed by amenity-heavy designs and a focus on wellness.

The sellers — affiliates tied to a local ownership group led by Nathan Madigan — had assembled and operated the properties for years. Healthpeak, which remains Janus Living’s majority owner following the IPO, is effectively using the new REIT as a growth vehicle, according to the outlet. The spinoff was valued at nearly $6 billion.

— Eric Weilbacher