SEATTLE — Emeritus Corp. has entered an agreement to acquire 29 senior housing communities for $299.8 million. The company, a national provider of assisted living, Alzheimer’s and dementia care, currently leases the properties. The acquisition amount included transaction costs. The properties comprise 2,257 units and are located across the country. They offer assisted living and memory care services to seniors. Dan Baty, Emeritus Co-CEO, said the deal was successful despite the current economic climate.
“This acquisition dovetails with our long term strategy by giving us ownership control over our properties, lowering our long-term financing costs, and allowing us to more fully benefit from increased value we create in theses communities,” Baty said.
Eight of the communities are currently subject to a cash flow sharing agreement with an entity controlled by Baty. As a part of the purchase, the communities will be held in a joint venture owned by Emeritus and a Baty-related entity, which provides for similar economic terms and conditions as the existing cash flow sharing agreement.
Baty continued, “We continue to pursue our strategy of purchasing leased communities which will benefit us over the long term. We are pleased that our financing partners are able to work with us to find mutually beneficial outcomes in today’s market.”
Emeritus currently operates 287 communities in 36 states representing 29,000 residents.