Emeritus Purchases 23 Senior Living Communities for $305M

Seattle-based senior living provider Emeritus Corporation grew again with the acquisition of 23 communities the firm is already leasing. The price tag of $305 million excludes transaction costs. Emeritus adds 1,672 units across the country to its portfolio with the purchase.In September, Emeritus–a provider of assisted living and Alzheimer’s and related dementia care–completed a merger transaction with Summerville Senior Living Inc. making Emeritus one of the largest national assisted living companies, operating 287 communities in 36 states, comprising 24,712 units with a capacity for 29,474 residents at that time. The addition of the 23 properites provides increased financial flexibility for the company and furthers its long-term strategy of increasing its owned assets above 60 percent of the firm’s consolidated portfolio. The company intends to finance the transaction through mortgage debt of approximately $250 million, mezzanine debt of $30 million provided by the sellers and the balance from available cash on hand. Emeritus expects to close the transaction by the end of the second quarter of 2008. At the same time the merger with Summerville was announced, Emeritus also acquired nine communities formerly leased and operated by the company. The purchase price of $88 million garnered nine communities with 733 units in the state of New York. And on Aug. 15, Emeritus acquired 41 communities from Health Care Property Investors Inc.for $501.5 million.