Chicago-based Ventas Inc. has sold 12 senior housing communities to Assisted Living Concepts Inc. (ALC) for a total of $100 million in cash. Prior to the sale, the Menomonee Falls, Wis.-based ALC was the tenant of the communities. At closing, the leases were terminated and the parties agreed to dismiss their pending litigation in the U.S. District Court for the Northern District of Illinois.
‘Ventas stands for excellence in senior housing,’ says Debra A. Cafaro, Ventas' chairwoman and CEO. ‘This transaction allows ALC's new chief executive officer and its board of directors to focus their attention and resources on providing quality care for its residents.’
Ventas' total annual base rent under its leases with ALC approximated $7.2 million on a GAAP basis and $6.6 million on a cash basis. The 12 communities sold to ALC contain 696 units in five states. Under the terms of the transaction, ALC also paid Ventas' expenses in connection with the litigation.