Brookdale Senior Living Closes Sunrise Portfolio Acquisition

Brookdale Senior Living Inc. has completed its previously announced acquisition of communities from affiliates of Sunrise Senior Living Inc.

Brookdale acquired 18 communities, and three additional communities were acquired directly from Sunrise by an unrelated third party. The aggregate net purchase price for the 18 communities acquired was $190 million plus customary transaction expenses.

The portfolio of 18 communities comprises 1,197 total units, including 92 independent living units, 746 assisted living units and 359 Alzheimer's units. For the nine months ended Sept. 30, the 18 communities generated total revenues of approximately $51.5 million. The average unit occupancy for the month of September was approximately 91.1% for the portfolio.

Brookdale financed the transaction through the assumption of approximately $85.4 million of mortgage debt, with the balance of the purchase price paid from cash on hand. The company says it intends to incur approximately $48 million of additional mortgage debt financing related to this portfolio in the near future. The existing debt assumed has a variable interest rate, currently at a weighted average rate of less than 2.5%.

SOURCE: Brookdale Senior Living


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