The properties are under a long-term master lease with Alterra Healthcare. Part of the deal called for Nationwide's assumption of the approximately $45 million that accounts for JER's portion of the JV's secured debt. The payment was based on the 1,550-unit portfolios' valuation of $166 million.

Cia Buckley, senior managing director of North American Investments at JER Partners, says that while they were pleased with the portfolio's performances, the "time was right to monetize our interest in these investments. NHP was the natural buyer because of their familiarity with the portfolio and their existing relationship with Alterra." JER Partners is real estate investment management firm JE Robert Cos.' private equity investment division.

The transaction does not mark JER's exit from the senior housing market. "Going forward, we hope to remain active buyers of senior housing and will continue to seek out other senior housing investment opportunities that meet our investment criteria," Buckley adds.