CHICAGO — Healthcare REIT Ventas, Inc., has reached an agreement to acquire the real estate interests controlled by McLean, Va.-based Sunrise Senior Living for approximately $186 million. The portfolio comprises minority stakes in 58 senior housing properties located in the United States and Canada.
Sunrise's interest in the properties represents ownership stakes of between 15 and 25 percent. Sunrise's share of annualized net operating income after management fees for the properties to be acquired was approximately $19.5 million during the first half of 2010. Sunrise also manages the 58 properties and will continue to do so following the transaction's closing, which is expected to take place in the fourth quarter of 2010. The average occupancy of the portfolio is currently more than 89 percent.
Terms of the deal include Ventas acquiring $145 million in mortgage debt for the properties. In addition, Ventas is modifying its management contract with Sunrise for the properties in the portfolio as well as the other 21 Ventas-owned senior housing properties that Sunrise currently manages. In exchange for Ventas not exercising its termination rights during 2010 and 2011, Sunrise is reducing its management fee in terms favorable to Ventas.
Ventas' portfolio currently consists of approximately 600 assets in 44 states, the District of Columbia and two Canadian provinces. The company's holdings include skilled nursing facilities, hospitals and medical office buildings. This most recent acquisition continues a busy year for the REIT. In June, Ventas acquired Lillibridge Healthcare Services as well as the company's interests in 95 medical office buildings and ambulatory facilities.
— Coleman Wood