By Barbra Murray, Contributing Editor<\/p>\n
Emeritus Corp.’s portfolio has just gotten a lot bigger. The Seattle-based assisted living provider, in a joint venture with Blackstone Real Estate Advisors VI L.P., an affiliate of The Blackstone Group, and Columbia Pacific Advisors, has closed the $1.2 billion acquisition of a 144-property seniors housing portfolio from Portland-headquartered Stayton SW Living L.L.C.\u00a0 Stayton, formerly known as Sunwest Management, parted with the assets as part of its Chapter 11 plan of reorganization.<\/p>\n
Completion of the transaction–which includes 12 assets that were deferred–comes about three months after an auction in which the Blackstone\/Emeritus joint venture acted as the stalking horse bidder. The joint venture has walked away with the group of communities by forking over cash and securities and assuming existing debt.\u00a0<\/p>\n
The seniors housing portfolio, currently 79 percent occupied, encompasses 11,769 units and will offer annualized revenues of approximately $346.8 million. Emeritus, which made an equity contribution of $19 million for a 5.8 percent stake in the joint venture, has already commenced its role as manager of 143 of the 144 properties and will benefit from a 5 percent\u00a0management fee. Additionally, Emeritus has the right of first opportunity to acquire additional former Sunwest properties.<\/p>\n
“The joint venture will contribute to our growth over the next several years and should provide a significant return for the company over time,” Daniel Baty, Emeritus chairman & co-CEO, noted in a prepared statement. The company now operates a portfolio of 460 properties spanning 44 states.<\/p>\n
For Stayton, the closing of the deal was a long time coming. Hamstreet & Associates’ Clyde Hamstreet joinedas chief restructuring officer in November 2008, a month before 25 Sunwest affiliates filed Chapter 11 bankruptcy cases. And in March 2009, the Securities and Exchange Commission filed a lawsuit against the company. Michael Grassmueck, receiver in the SEC action, said, “This transaction will provide a distribution to creditors that did not appear possible at the beginning and is a very positive resolution.”<\/p>\n","protected":false},"excerpt":{"rendered":"
Emeritus Corp.’s portfolio has just gotten a lot bigger. In a joint venture with Blackstone Real Estate Advisors VI L.P. and Columbia Pacific Advisors, it closed the $1.2 billion acquisition of a 144-property seniors housing portfolio from Stayton SW Living L.L.C., which parted with the assets as part of its Chapter 11 plan of reorganization.<\/p>\n","protected":false},"author":969,"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":[21783,21754,21742,15],"tags":[],"class_list":["post-1004022172","post","type-post","status-publish","format-standard","hentry","category-investment","category-medical-office","category-latest","category-west"],"acf":[],"yoast_head":"\n