Seattle-based Emeritus Corporation has agreed to purchase five assisted living communities, currently leased to the company, for $62.5 million, plus estimated closing costs of $2.8 million. Located in Ohio, Florida, California and Michigan, the five communities comprise 432 units. The transaction will increase the company\u2019s portfolio of owned properties to 154 or 60.4 percent of the total Emeritus portfolio of 289 communities. This is the third acquisition that Emeritus has announced during 2008. In early June, the company announced the acquisition of 29 communities for $299.8 million, excluding transaction costs. In February, the company announced a $305 million deal for 23 communities. In each case, Emeritus is buying communities it is currently leasing. \u201cWe are continuing to pursue our long-term real estate strategy of purchasing communities that we currently lease, where appropriate,\u201d Granger Cobb, co-CEO of Emeritus, told CPN. \u201cWe see strong value in owning properties that are tied to our business as it guarantees us 100 percent of the upside value created through the business as well as the intrinsic real estate appreciation. We will continue to be opportunistic in looking at future acquisition opportunities.\u201d Emeritus plans to finance the transaction announced today through mortgage debt equal to about 75 percent of the purchase price, seller-provided financing of $10 million and the balance from the refund of certain security deposits and cash on hand. The seller will finance the $10 million for three years at an annual interest rate of 8 percent, set to increase annually by 25 basis points. Monthly payments will equal accrued interest plus a principal payment of $40,000. Emeritus is a national provider of assisted living and Alzheimer\u2019s and related dementia care services to seniors. The company currently operates 289 communities in 36 states and assists 29,500 residents.<\/p>\n","protected":false},"excerpt":{"rendered":"
Seattle-based Emeritus Corporation has agreed to purchase five assisted living communities, currently leased to the company, for $62.5 million, plus estimated closing costs of $2.8 million. Located in Ohio, Florida, California and Michigan, the five communities comprise 432 units. The transaction will increase the company\u2019s portfolio of owned properties to 154 or 60.4 percent of…<\/p>\n","protected":false},"author":1314,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[37301],"tags":[],"class_list":["post-1003834836","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"yoast_head":"\n