The CoStar Group's Randyl Drummer reports on the $236 million portfolio sale of seniors housing properties by Investors Real Estate Trust (IRET) via six separate transactions.
The deals mark the end of IRET's seniors housing portfolio as it exits the space in preparation for becoming a pure-play multifamily company. The publicly traded REIT also recently disposed of its office and retail assets as it focuses instead on the conventional apartment market.
IRET announced in early 2015 that it was exploring the sale of almost all of its office and retail assets and shifting its focus to multifamily assets in the upper Midwest states where the energy-price collapse has pummeled the economy.
"The sale of our senior housing properties is a significant step in our efforts to transform IRET into a pure-play multifamily company," said Chief Executive Officer Tim Mihalick in a statement. "As we move forward, these transactions unlock significant value within our portfolio and provide capital for new investments, while we enhance our operating platform, strengthen our balance sheet and drive cash flow."