Senior Housing Properties Trust (SNH) said Tuesday that it has
agreed to buy 38 senior-living communities from CNL Lifestyle
Properties Inc. (CLLY).
The deal--valued at $790 million, including the assumption of
debt--includes what Senior Housing called "high quality" properties
that traditionally rely on private payments. Senior Housing said it
expects the deal to close in the second quarter of next year.
The firm said more than 95% of revenues at the communities came
from residents' private resources, and that they had an occupation
rate of 93% in November.
Eighteen of the communities--with 1,847 units--are currently
leased to six operators throughout 12 states, from California to
Rhode Island.
The other 20 communities, which have 1,619 units, are managed by
six operators in six states, mostly Georgia, Missouri and
Arkansas.
Senior Housing said it expects to assume about $153 million in
mortgage debt on some of the communities, with an average interest
rate of 4.8%.
Senior Housing added that it expects to have enough liquidity
for the deal, along with a recent deal for several medical offices,
as it has received a $700 million bridge-loan commitment from Wells
Fargo Bank NA and Citigroup Global Markets Inc., along with a $750
million unsecured rotating credit facility that is "substantially
undrawn."
The firm recently agreed to buy 23 medical office buildings for
$539 million, including the assumption of $30 million in mortgage
debt. It expects that deal to close in the first quarter.
Write to Michael Calia at michael.calia@wsj.com
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