Digital Bridge to sell off wellness business in $3B deal

Portfolio’s more than 300 properties range from senior housing to medical offices

National /
Sep.September 08, 2021 01:30 PM
Digital Bridge's Marc Ganzi (Ganzi by Sonya Revell)
Digital Bridge’s Marc Ganzi (Ganzi by Sonya Revell)

Digital Bridge, the company formerly known as Colony Capital, now looks almost nothing like its former self.

The Boca Raton–based firm agreed to sell its “wellness infrastructure business” consisting of its senior living and medical office buildings to Highgate Capital Investments and Aurora Health Network in a deal valued at $3.2 billion.

The portfolio is made up of more than 300 senior housing, skilled nursing, medical office and hospital assets. As part of the deal, Digital Bridge will receive $226 million in cash along with a $90 million, 5-year seller note.

The agreement will also relieve Digital Bridge of hefty debt payments. Highgate and Aurora will assume $2.6 billion of investment-level debt and $294 million of subsidiary-level debt.

Over the past year and half, Digital Bridge has undergone a series of radical changes.

Last year, the company’s longtime CEO Tom Barrack stepped down and was replaced by Marc Ganzi, whose firm Digital Bridge merged with Colony Capital in 2019. Under Ganzi, the firm relocated its headquarters from Los Angeles to Boca Raton. He pivoted the firm away from traditional real estate assets to digital infrastructure such as data centers and cell towers.In June, Ganzi rebranded the combined firm as Digital Bridge.

Shortly after the company’s rebrand, Barrack was arrested in July and charged with acting as a foreign agent on behalf of the United Arab Emirates, according to the Department of Justice. Barrack has pleaded not guilty and is free on bail. The Department of Justice has not accused Digital Bridge of any wrongdoing.

The latest deal, which Digital Bridge expects to be completed early next year, marks its second sale to Highgate Capital. In September 2020, Highgate bought a majority of Digital Bridge’s troubled hotel portfolio in a deal worth $2.8 billion. Last month, Digital Bridge found a buyer for the remainder of its hotel portfolio for an undisclosed price.





    Related Articles

    arrow_forward_ios
    San Jose Mayor Sam Liccardo (Getty)
    San Jose, Santa Clara to end housing cap, allowing 32K homes in North San Jose
    San Jose, Santa Clara to end housing cap, allowing 32K homes in North San Jose
    San Fransisco mayor London Breed (Getty, iStock)
    San Francisco $1.3B short on state-required affordable housing plan
    San Francisco $1.3B short on state-required affordable housing plan
    2000 Washington Street (Jacob Elliot)
    Deja vu on $25M ask for Pacific Heights penthouse
    Deja vu on $25M ask for Pacific Heights penthouse
    FivePoint's Dan Hedigan and Hunters Point Naval Shipyard (FivePoint Holdings, Cmichel67 CC BY-SA 4.0 via Wikimedia Commons)
    FivePoint slashes workforce, posts $37M loss
    FivePoint slashes workforce, posts $37M loss
    Swenson president Case Swenson and a rendering of Ohlone's third phase (LinkedIn/Case Swenson, iStock, Swenson)
    What Ohlone’s final phase says about San Jose’s Midtown
    What Ohlone’s final phase says about San Jose’s Midtown
    Discovery Builders' Albert Seeno Jr with 5110 Port Chicago Hwy (Wikipedia, Discovery Builders)
    Developer says housing project at former Concord naval station infeasible
    Developer says housing project at former Concord naval station infeasible
    456 Wildwood Ave, Piedmont (RedFin)
    Tudor estate sets all-time record on price in Piedmont
    Tudor estate sets all-time record on price in Piedmont
    Republic Urban Properties's Michael Van Every, Swenson's Case Swenson and render of mixed-use project at 860 W. San Carlos Street (LinkedIn, Swenson, Republic Urban Properties)
    Venture wins approval for 263-unit apartment complex in Midtown San Jose
    Venture wins approval for 263-unit apartment complex in Midtown San Jose
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...