In the transaction, Senior Housing Properties purchased 10 of these communities with resident capacity of 1,019. Simultaneously, NewSeasons leased these communities from Senior Housing Properties for an initial term ending in 2017, plus tenant renewal option terms thereafter for a total of 30 years. NewSeasons is a subsidiary of Independence Blue Cross, a large regional health insurance company based in Philadelphia.

The rent payable to Senior Housing Properties will average approximately $9.3 million annually during the initial lease term. Six of the 10 communities which Senior Housing Properties has purchased are located in Pennsylvania and four are in New Jersey. The occupancy of these communities at present is approximately 81%. One hundred percent of the revenues are paid by residents from their private resources.

In addition to the transaction Senior Housing, NewSeasons and Independence Blue Cross have entered an agreement to add up to four assisted-living communities with resident capacity for 540 to the deal. These four communities are currently encumbered by mortgage debts. Senior Housing Properties will purchase these communities if and when these mortgage debts are prepaid or assumed on terms mutually acceptable to the three companies and the lenders.