National Healthcare Properties acquires Discovery Senior Living

National Healthcare Properties (NHP) has announced its acquisition of 13 assisted living communities in collaboration with Discovery Senior Living, valuing the transaction at $64 million. This acquisition, involving a portfolio of 592 units across eight states, will bolster NHP’s senior housing operating portfolio, integrated under the RIDEA structure. Discovery Senior Living will continue to manage these properties following the deal's anticipated completion in the second quarter. NHP will hold approximately 98.5% ownership in the joint venture.

The transaction is strategically significant for NHP as it seeks to emphasize its SHOP (senior housing operating portfolio) segment. According to NHP, incorporating these communities would have boosted its fourth-quarter 2025 cash net operating income from the SHOP segment to about 40% of its total cash NOI. Furthermore, NHP has secured a right of first refusal along with a purchase option on an additional set of 13 communities, encompassing approximately 500 units, also managed by Discovery.

NHP President and CEO Michael Anderson highlighted the importance of this acquisition for diversifying and expanding NHP’s exposure to needs-based, private-pay senior housing. Anderson emphasized the demographic trends of an aging population and the current limited supply of such facilities as key factors for sustained growth. He also noted NHP’s ability to source off-market transactions through effective partnerships with established operators like Discovery.

Discovery Senior Living, known as the largest privately held senior living operator in the U.S., manages nearly 47,000 units across roughly 420 communities nationwide. This acquisition builds on Discovery’s existing management of several former Five Star, Brookdale, and Holiday by Atria communities. Richard Hutchinson, CEO of Discovery, expressed enthusiasm for the continued partnership with NHP, citing shared goals in service excellence and community performance.

The acquisition comes at a time of notable competition among senior housing operators and investors. Industry players like Sabra Health Care REIT are actively looking to expand their portfolios amidst strong demand driven by demographic trends. The transaction positions NHP to capitalize on growing industry dynamics and solidify its market footprint. As the deal moves towards finalization, the implementation of closing conditions and regulatory approvals will be critical to watch in the upcoming months.