Emeritus Corporation, a national provider of senior living services, has entered into a purchase and sale agreement to acquire 24 assisted living communities from its joint venture with affiliates of Blackstone Real Estate Advisors for $99 million.
The 24 communities are comprised of 1,867 units and have a portfolio value of $310 million. Emeritus already owns a 19% interest in the joint venture and has been operating these communities since late 2006.
The company will finance the deal with $220 million in mortgage debt, $40 million in cash, and final equity interests in the joint venture, according to a release.
"We have operated these communities under a management agreement that incentivized us to improve operations—that incentive represents a significant portion of the equity required to complete this purchase transaction," Emeritus Chairman Dan Baty said.
Final closing of the transaction is subject to routine closing conditions normal for an acquisition of this nature.