Welltower Inc. announced the deepening of its strategic partnership with Oakmont Management Group ("Oakmont"). The Company has agreed to purchase seven senior living communities, subject to customary closing conditions, which Oakmont will operate under an aligned RIDEA 3.0 contract. The seven properties are located in affluent markets in California and include four rental properties and three continuing care retirement communities (entry fee as well as rental), including Fountaingrove Lodge, the nation's first LGBTQ and Friends-focused CCRC.

The portfolio has geographic overlap with the Company's current footprint, which is expected to result in cost saving and revenue enhancement opportunities by leveraging Oakmont's operating acumen and marketing efforts. Additionally, three of the traditional rental communities opened in 2021 and are anticipated to generate significant occupancy, margin, and cash flow growth in 2023 and beyond. The total investment will be approximately $344 million and is expected to generate a high-single-digit unlevered IRR.

The transaction is anticipated to be funded through cash on hand and the issuance of operating partnership units. Following this transaction, the Welltower-Oakmont partnership will comprise 22 assets across highly-desirable micro markets in California with an additional three properties in development.