The properties -- The Somerby at University Park in Birmingham and The Somerby at Jones Farm in Huntsville -- have a combined 533 units, including 378 independent living units, 132 assisted living units and 28 Alzheimer's care units. CNL recently acquired the two continuing care retirement communities for $72 million after paying $3 million for a purchase option held by American Retirement, which has managed the properties since their completion in 1999.

CNL acquired the properties from the developer, an affiliate of Birmingham-based Daniel Corporation. Daniel Corp. joint ventured with American Retirement in the 15-year master lease of the properties, which includes two 10-year extension options and an option for American Corp. to purchase the properties in nine years. American Retirement's SVP of Strategic Planning Ross Roadman tells GlobesSt.com that Daniel Corp. is a "passive partner" whose leasehold interest American Retirement will buy out over the next five years for an undisclosed fixed amount.

As part of the lease agreement, CNL also has committed to fund additional earn-out payments to American Retirement and Daniel depending upon the financial performance of the communities. Proceeds from the earn-out, if any, will be used first to satisfy American Retirement's buyout obligations to Daniel.