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BROOKDALE BUYS SENIOR HOUSING PORTFOLIO FROM SUNRISE FOR $204 MILLION

Ordan

BRENTWOOD, TENN., AND MCLEAN, VA. — McLean-based Sunrise Senior Living has entered into an agreement to sell a 21-property senior housing portfolio to Brentwood-based Brookdale Senior Living for $204 million. The portfolio contains six properties located in Ohio; four located in Indiana; two located in Connecticut and Pennsylvania; and one property each in California, Colorado, Georgia, Michigan, New Mexico, North Carolina and Virginia. The communities comprise a total of 1,389 units, breaking down to 876 assisted living units, 421 Alzheimer's units and 92 independent living units.

As part of the agreement, BLC Acquisitions, an affiliate of Brookdale that is making the purchase, has put $5 million in earnest money into escrow toward the purchase price. The transaction is expected to close on November 16. Brookdale will finance the sale with approximately $134 million in mortgage debt and pay the rest with cash on hand. Upon closing, Sunrise expects to record a gain of approximately $50 million.

“This is another important step in our restructuring process and provides us with needed funds to pay down our bank line and with additional working capital. We are particularly pleased that our residents and team members in these communities will join a fine and committed operator like Brookdale,” said Mark Ordan, CEO of Sunrise Senior Living, in a prepared statement.

As of June 30, Sunrise Senior Living controlled 415 senior housing communities in the United States, Canada, Germany and the United Kingdom. Brookdale Senior Living currently owns and operates 546 communities in 35 states.

— Coleman Wood

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