Search
 

Senior Living Portfolio Fetches $138M

NASHVILLE-In a joint venture with an affiliate of Prudential Real Estate Investors, the locally based public company acquires an 831-unit eight-property senior living portfolio from an affiliate of Epoch Senior Living Inc.

By Brian K. Miller | Updated on November 03, 2005

NASHVILLE-Locally based public company American Retirement Corp. and an affiliate of Prudential Real Estate Investors have paid Epoch Senior Living Inc. $138 million for 831 senior housing units in eight developments. The joint venture is 20% owned by ARC and 80% owned by a senior housing affiliate of PREI, which is the real estate investment management business of Prudential Financial.

The senior housing portfolio is comprised of 742 assisted living units and 89 Alzheimer’s units in Arizona, Colorado, Georgia, Kansas, Minnesota, Nevada and Texas. The eight communities generated annualized total revenues of approximately $29 million for the nine months ended Sept. 30, 2005. Occupancy at the end of October was 93%.

The estimated $53 million of equity in the transaction acquisition was funded by proportional capital contributions from the members of the joint venture entity. ARC will manage the portfolio pursuant to a long-term management agreement. Merrill Lynch Capital provided $85 million of debt financing. The debt has a five year term and requires the payment of interest only at a floating rate based upon Libor.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.