Emeritus Makes Agreement to Purchase Communities for $300M

Assisted-living firm Emeritus Corp. has entered into an agreement to purchase 29 communities currently leased by the company for $299 million, excluding transaction costs.  The communities comprise of 2,257 units located throughout the United States. Eight of the communities are currently subject to a cash flow sharing agreement with an entity controlled by Dan Baty, the company’s Co-CEO. As part of this purchase, these properties will be held in a joint venture owned by the company and a Baty-related entity which provides for similar economic terms and conditions as the existing cash flow sharing agreement. CPN reported in February that Emeritus acquired 23 communities that the firm had been leasing for $305 million, excluding transaction costs. Last September, Emeritus completed a merger transaction with Summerville Senior Living Inc. making Emeritus one of the largest national assisted living companies. And last August, Emeritus acquired 41 communities from Health Care Property Investors Inc. for $501.5 million.After completion of this transaction, the company will have acquired 149 communities over the last 18 months, formerly operated under long-term leases for a total purchase price of approximately $1.5 billion. This transaction will increase the firm’s portfolio of owned properties to 160, or 62.5 percent of the company’s total consolidated portfolio. The company operates a total of 287 communities.