CNL Acquires 29 Senior Housing Communities
- Jan 12, 2011
January 12, 2011
By Allison Landa, News Editor
CNL Lifestyle Properties has made its entry into the senior housing market, having closed on of a 29-property portfolio spread across 12 states. The transaction, which was valued at $630 million, was made through a joint venture with Sunrise Senior Living Inc.
Per the agreement, CNL will own 60 percent of that joint venture, while Sunrise will own the remaining 40 percent and operate the communities under a long-term management agreement.
According to CNL president & CEO Byron Carlock, the transaction creates a total $3.1 billion portfolio of assets that appeal to individuals at all stages of life. He added that it further enhances the firm’s investment profile at a time when demand for senior communities is increasing.
With the Baby Boomer generation nearing retirement, Carlock’s assertion may well be correct. As the oldest members of the generation turn 65, more and more will be seeking senior housing in the coming years.
A real estate investment trust, CNL has a 151-property portfolio in the United States and Canada in the lifestyle and recreation sectors. Sunrise Senior Living operates approximately 320 communities in the United States, Canada and United Kingdom, with a unit capacity of 31,200 units.