{"id":1004049381,"date":"2012-11-02T05:46:44","date_gmt":"2012-11-02T13:46:44","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004049381"},"modified":"2022-12-06T22:03:04","modified_gmt":"2022-12-07T06:03:04","slug":"hcp-closes-acquisition-of-1-7b-senior-housing-portfolio","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/hcp-closes-acquisition-of-1-7b-senior-housing-portfolio\/","title":{"rendered":"HCP Closes Acquisition of $2B Seniors Housing Portfolio"},"content":{"rendered":"

By Gail Kalinoski, Contributing Editor<\/em><\/p>\n

Two weeks after announcing it planned to acquire 133 senior housing communities for $1.73 billion from a joint venture between Emeritus Corp. and an affiliate of The Blackstone Group, HCP has already closed on 127 of the properties. HCP expects to close on the remaining six properties during the fourth quarter.<\/p>\n

As part of the transaction, Emeritus, the nation\u2019s largest assisted living and memory care operator, will continue to operate the communities under a new triple-net, master lease.<\/p>\n

Meanwhile, Seattle-based Emeritus purchased the remaining nine properties that had originally been part of the Blackstone JV for 142 communities. HCP agreed to provide $52 million in secured debt financing for those acquisitions with Emeritus paying the $10 million balance in cash.<\/p>\n

\u201cWe are delighted to significantly expand our relationship with Emeritus, a best-in-class operator, with this strategic transaction,\u201d said Jay Flaherty, HCP chairman and CEO. \u201cCongratulations go out to the Emeritus, Blackstone and HCP teams and to Chicago Title for their extraordinary, diligent and cooperative efforts that enabled us to close a transaction of this size within two weeks of announcement.\u201d<\/p>\n

To help pay for the acquisition, HCP has agreed to sell 22 million shares of common stock to Goldman, Sachs & Co. as sole underwriter. HCP has also granted Goldman, Sachs an option for 30 days to purchase up to an additional 3.3 million shares of common stock.<\/p>\n

The deal was announced Oct. 16, when HCP, a Long Beach, Calif.-based REIT, said it was purchasing the portfolio, which consists of 10,350 units in 29 states. The portfolio is a mix of 61 percent assisted living, 25 percent independent living, 13 percent memory care and 1 percent skilled nursing. As part of the transaction, Emeritus said it would invest an additional $30 million to continue improving the portfolio.<\/p>\n

Of the 133 communities, 99 are stabilized and 34 are in lease-up. The properties have an overall occupancy of 86.8 percent with those in lease-up at 74 percent and the stabilized communities at 91.5 percent, according to HCP.<\/p>\n

Rent in the first year of the triple-net master lease will be $105.5 million and increase each year, according to Emeritus. The company has been operating the communities since 2010 under management agreements for a fee equal to 5 percent of collected revenues.<\/p>\n

The joint venture, which included Blackstone Real Estate Partners VI, an affiliate of The Blackstone Group, certain former tenants-in-common, Emeritus and an investment group affiliated with Emeritus Chairman Dan Baty, acquired the portfolio in August 2010 out of bankruptcy for about $1.2 billion, including assumption of debt.<\/a> The joint venture subsequently invested $42 million in capital improvements in the properties.<\/p>\n

The new deal with HCP calls for Emeritus to receive cash of about $140 million, comprised of approximately $40 million for the company\u2019s interest in the Blackstone JV, and an incentive payment of about $100 million based on the final rate of return to the Blackstone JV\u2019s investors, according to Emeritus. The company had owned approximately 6 percent interest in the Blackstone JV.<\/p>\n

\u201cThis is a very significant transaction for Emeritus,\u201d said Granger Cobb, Emeritus\u2019 president and CEO. \u201cStrong operating performance, favorable financial market conditions, and Dan Baty\u2019s sense for timing and transaction dynamics, allowed us to execute sooner than we originally contemplated. It allows us to benefit from the substantial upside economics in this portfolio and provides capital for accretive strategic investment in other areas.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Two weeks after announcing it planned to acquire 133 seniors housing communities for close to $2 billion from a joint venture between Emeritus Corp. and an affiliate of The Blackstone Group, HCP has already closed on 127 of the properties. <\/p>\n","protected":false},"author":1068,"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],"tags":[],"class_list":["post-1004049381","post","type-post","status-publish","format-standard","hentry","category-investment","category-medical-office","category-latest"],"acf":[],"yoast_head":"\nHCP Closes Acquisition of $2B Seniors Housing Portfolio - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/hcp-closes-acquisition-of-1-7b-senior-housing-portfolio\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"HCP Closes Acquisition of $2B Seniors Housing Portfolio\" \/>\n<meta property=\"og:description\" content=\"Two weeks after announcing it planned to acquire 133 seniors housing communities for close to $2 billion from a joint venture between Emeritus Corp. and an affiliate of The Blackstone Group, HCP has already closed on 127 of the properties.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/hcp-closes-acquisition-of-1-7b-senior-housing-portfolio\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2012-11-02T13:46:44+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-07T06:03:04+00:00\" \/>\n<meta name=\"author\" content=\"Gail Kalinoski\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/hcp-closes-acquisition-of-1-7b-senior-housing-portfolio\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/hcp-closes-acquisition-of-1-7b-senior-housing-portfolio\\\/\"},\"author\":{\"name\":\"Gail Kalinoski\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/fc5b5df1393e5023d2417bd48c2fda57\"},\"headline\":\"HCP Closes Acquisition of $2B Seniors Housing Portfolio\",\"datePublished\":\"2012-11-02T13:46:44+00:00\",\"dateModified\":\"2022-12-07T06:03:04+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/hcp-closes-acquisition-of-1-7b-senior-housing-portfolio\\\/\"},\"wordCount\":549,\"commentCount\":0,\"articleSection\":[\"Investment\",\"Medical Office\",\"News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/hcp-closes-acquisition-of-1-7b-senior-housing-portfolio\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/hcp-closes-acquisition-of-1-7b-senior-housing-portfolio\\\/\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/hcp-closes-acquisition-of-1-7b-senior-housing-portfolio\\\/\",\"name\":\"HCP Closes Acquisition of $2B Seniors Housing Portfolio - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#website\"},\"datePublished\":\"2012-11-02T13:46:44+00:00\",\"dateModified\":\"2022-12-07T06:03:04+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/fc5b5df1393e5023d2417bd48c2fda57\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/hcp-closes-acquisition-of-1-7b-senior-housing-portfolio\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/hcp-closes-acquisition-of-1-7b-senior-housing-portfolio\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/hcp-closes-acquisition-of-1-7b-senior-housing-portfolio\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"HCP Closes Acquisition of $2B Seniors Housing Portfolio\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#website\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/\",\"name\":\"Commercial Property Executive\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/fc5b5df1393e5023d2417bd48c2fda57\",\"name\":\"Gail Kalinoski\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2023\\\/04\\\/Gail-Kalinoski-headshot.jpeg?w=86\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2023\\\/04\\\/Gail-Kalinoski-headshot.jpeg?w=86\",\"contentUrl\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2023\\\/04\\\/Gail-Kalinoski-headshot.jpeg?w=86\",\"caption\":\"Gail Kalinoski\"},\"description\":\"Kalinoski has been a contributing writer to Commercial Property Executive and Multi-Housing News since 2010 and previously wrote for three years for Commercial Property News. Gail has been a freelance writer and editor for more than 20 years, contributing to daily websites, magazines, weekly business newspapers, market intelligence newsletters, research reports, monthly B-to-B and consumer magazines. Earlier in her career, Gail worked for Gannett Corp. as an editor and reporter for 15 years. Gail has a bachelor\u2019s degree in journalism from Pace University.\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/author\\\/gail-kalinoski\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"HCP Closes Acquisition of $2B Seniors Housing Portfolio - Commercial Property Executive","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.commercialsearch.com\/news\/hcp-closes-acquisition-of-1-7b-senior-housing-portfolio\/","og_locale":"en_US","og_type":"article","og_title":"HCP Closes Acquisition of $2B Seniors Housing Portfolio","og_description":"Two weeks after announcing it planned to acquire 133 seniors housing communities for close to $2 billion from a joint venture between Emeritus Corp. and an affiliate of The Blackstone Group, HCP has already closed on 127 of the properties.","og_url":"https:\/\/www.commercialsearch.com\/news\/hcp-closes-acquisition-of-1-7b-senior-housing-portfolio\/","og_site_name":"Commercial Property Executive","article_publisher":"https:\/\/www.facebook.com\/CPExecutive","article_published_time":"2012-11-02T13:46:44+00:00","article_modified_time":"2022-12-07T06:03:04+00:00","author":"Gail Kalinoski","twitter_card":"summary_large_image","twitter_creator":"@cpexecutive","twitter_site":"@cpexecutive","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.commercialsearch.com\/news\/hcp-closes-acquisition-of-1-7b-senior-housing-portfolio\/#article","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/hcp-closes-acquisition-of-1-7b-senior-housing-portfolio\/"},"author":{"name":"Gail Kalinoski","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/fc5b5df1393e5023d2417bd48c2fda57"},"headline":"HCP Closes Acquisition of $2B Seniors Housing Portfolio","datePublished":"2012-11-02T13:46:44+00:00","dateModified":"2022-12-07T06:03:04+00:00","mainEntityOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/hcp-closes-acquisition-of-1-7b-senior-housing-portfolio\/"},"wordCount":549,"commentCount":0,"articleSection":["Investment","Medical Office","News"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.commercialsearch.com\/news\/hcp-closes-acquisition-of-1-7b-senior-housing-portfolio\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.commercialsearch.com\/news\/hcp-closes-acquisition-of-1-7b-senior-housing-portfolio\/","url":"https:\/\/www.commercialsearch.com\/news\/hcp-closes-acquisition-of-1-7b-senior-housing-portfolio\/","name":"HCP Closes Acquisition of $2B Seniors Housing Portfolio - Commercial Property Executive","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/#website"},"datePublished":"2012-11-02T13:46:44+00:00","dateModified":"2022-12-07T06:03:04+00:00","author":{"@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/fc5b5df1393e5023d2417bd48c2fda57"},"breadcrumb":{"@id":"https:\/\/www.commercialsearch.com\/news\/hcp-closes-acquisition-of-1-7b-senior-housing-portfolio\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.commercialsearch.com\/news\/hcp-closes-acquisition-of-1-7b-senior-housing-portfolio\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.commercialsearch.com\/news\/hcp-closes-acquisition-of-1-7b-senior-housing-portfolio\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.commercialsearch.com\/news\/"},{"@type":"ListItem","position":2,"name":"HCP Closes Acquisition of $2B Seniors Housing Portfolio"}]},{"@type":"WebSite","@id":"https:\/\/www.commercialsearch.com\/news\/#website","url":"https:\/\/www.commercialsearch.com\/news\/","name":"Commercial Property Executive","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/fc5b5df1393e5023d2417bd48c2fda57","name":"Gail Kalinoski","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/Gail-Kalinoski-headshot.jpeg?w=86","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/Gail-Kalinoski-headshot.jpeg?w=86","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/Gail-Kalinoski-headshot.jpeg?w=86","caption":"Gail Kalinoski"},"description":"Kalinoski has been a contributing writer to Commercial Property Executive and Multi-Housing News since 2010 and previously wrote for three years for Commercial Property News. Gail has been a freelance writer and editor for more than 20 years, contributing to daily websites, magazines, weekly business newspapers, market intelligence newsletters, research reports, monthly B-to-B and consumer magazines. Earlier in her career, Gail worked for Gannett Corp. as an editor and reporter for 15 years. Gail has a bachelor\u2019s degree in journalism from Pace University.","url":"https:\/\/www.commercialsearch.com\/news\/author\/gail-kalinoski\/"}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004049381","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/users\/1068"}],"replies":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/comments?post=1004049381"}],"version-history":[{"count":1,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004049381\/revisions"}],"predecessor-version":[{"id":1004616274,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004049381\/revisions\/1004616274"}],"wp:attachment":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media?parent=1004049381"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/categories?post=1004049381"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/tags?post=1004049381"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}