TOLEDO, Ohio, Feb. 19, 2020 /PRNewswire/ -- Welltower Inc. (NYSE: WELL) today announced the launch of welltowerLIVING™, a wellness focused housing concept for residents aged 55 and over.
The brand was developed with the specific aim to fulfill the unmet need for purpose-built wellness and social focused private-pay housing that is affordable for moderate income seniors, many of whom will be Medicare eligible. The brand intends to offer a lower cost, technologically delivered wellness solution to residents. This offering is limited in service relative to traditional senior housing, yet program-rich relative to traditional multifamily options. This extension of the Welltower brand and product offerings significantly expands the company's addressable market from a predominantly 75+ years old, affluent resident base to one which is 55+ years old with a broader economic profile.
The first application of welltowerLIVING is through the acquisition of three assets located in Las Vegas, Nevada, comprising 620 total units. The properties, which were extensively renovated in 2017, are expected to have lower staffing levels and low annual resident turnover of just 20-25%, resulting in anticipated operating margins and capital expenditures which are more consistent with those attained in the multifamily sector. The model will also provide opportunities for Welltower's health system partners to integrate clinical programs and onsite care models in select communities with the goal of improving outcomes and reducing the total cost of care for their senior populations. Welltower's Clover assets are another example of limited-service housing that is designed to meet many needs of aging seniors. Welltower's total portfolio of senior apartments currently consists of approximately 4,500 units across 35 properties in 5 states.
Welltower's efforts to expand its presence within the senior apartments market are further exemplified by its partnerships with Terwilliger Pappas and Priya Living. Welltower's newly formed strategic partnership with Charlotte, North Carolina based Terwilliger Pappas will develop a wellness oriented residential product in the southeast. Pappas is an existing partner of Welltower, having recently partnered to develop an estimated $400 million Class A+ mixed use development in midtown Charlotte which is anchored by Atrium Health. Additionally, our recently announced partnership with Priya Living of San Francisco will offer a highly differentiated product designed to serve a tremendously underserved market, which will also be part of the senior apartment portfolio. In both cases, we anticipate that our relationships will provide a multi-billion dollar investment opportunity for Welltower shareholders over the next decade. This year we expect to start three projects each with Pappas and Priya Living.
"The growing population of aging adults is expected to create significant demand for housing options across all income levels," commented Ayesha Menon, SVP - Strategic Investments. "welltowerLIVING delivers a housing product at a significantly lower cost to residents than traditional senior housing alternatives. This initiative also allows Welltower to leverage a unique triumvirate of capabilities – healthcare relationships, sector-relevant data and analytics expertise, and real estate investment capabilities – to deliver a differentiated product that creates value for all stakeholders."
"welltowerLIVING was created to provide a safe and accessible environment for aging-in-place," commented Thomas J. DeRosa, Welltower Chairman and CEO. "The integration of physical design, technology and affordable access to products and services that can enhance the social determinants of health will allow Welltower to meet the needs of the rapidly growing population of moderate income, independent seniors that we expect will be increasingly covered by Medicare Advantage programs."
Forward Looking Statement
This press release may contain "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995. When Welltower uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause Welltower's actual results to differ materially from Welltower's expectations discussed in the forward-looking statements. This may be a result of various factors, including, but not limited to, those factors discussed in Welltower's reports filed from time to time with the SEC. Welltower undertakes no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise, or to update the reasons why actual results could differ from those projected in any forward-looking statements.
Welltower Inc. (NYSE: WELL), an S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of health care infrastructure. The Company invests with leading seniors housing operators, post-acute providers and health systems to fund the real estate infrastructure needed to scale innovative care delivery models and improve people's wellness and overall health care experience. Welltower®, a real estate investment trust ("REIT"), owns interests in properties concentrated in major, high-growth markets in the United States, Canada and the United Kingdom, consisting of seniors housing and post-acute communities and outpatient medical properties. More information is available at welltower.com.