Sunrise Senior Living Inc. has entered into an agreement with CHT Partners L.P. a subsidiary of CNL Healthcare Trust Inc. to form a new joint venture to which Sunrise will contribute seven consolidated communities containing 687 units and CHT will contribute approximately $57 million.
The new joint venture will be owned approximately 55 percent by CHT and approximately 45 percent by Sunrise Senior Living Investments Inc., a subsidiary of Sunrise Senior Living with a gross valuation of approximately $226 million.
In connection with the transaction, it is expected that approximately $50 million will be used to pay down existing financing on certain of the communities transferred to the new joint venture. Sunrise is expected to receive approximately $5 million in cash at closing of the transaction.
Sunrise will continue to operate the seven communities under long term management agreements with a six percent management fee. The seven communities are comprised of Sunrise on Connecticut Avenue in Washington, DC, Sunrise of Santa Monica in Santa Monica, CA, and the five communities referenced in Sunrise's Form 8-K supplemental information filed on May 1, 2012.
American Healthcare Investors Secures $200M Credit Facility for Griffin-American Griffin-American Healthcare REIT II
American Healthcare Investors and Griffin Capital Corp., the co-sponsors of Griffin-American Healthcare REIT II Inc., announced that the REIT has entered into a $200 million unsecured revolving line of credit with Merrill Lynch, Pierce, Fenner & Smith Inc. and KeyBanc Capital Markets as joint lead arrangers.
Bank of America will serve as administrative agent with KeyBank N.A. acting as syndication agent. The credit line may be increased up to $350 million upon meeting certain conditions. The unsecured credit facility may be utilized to acquire, finance or re-finance properties, as well as for other corporate purposes.
The new unsecured credit facility matures on June 5, 2015, but may be extended for one additional year by Griffin-American Healthcare REIT II upon the satisfaction of certain conditions. At the option of the REIT’s operating partnership, draws under the facility bear interest at per annum rates equal to (1) the Eurodollar Rate plus a margin ranging from 2.0 percent to 3.0 percent based on the REIT’s consolidated leverage ratio or (2) the greater of Bank of America’s prime rate, the Federal Funds Rate plus 0.50 percent or the one-month Eurodollar Rate plus 1.0 percent, plus a margin ranging from 1.0 percent to 2.0 percent based on the REIT’s consolidated leverage ratio.
The new unsecured line of credit replaces two secured lines of credit totaling $116.5 million previously provided by Bank of America and KeyBank N.A.
Aegis Living Purchases Property in Seattle
Aegis Living, a national leader in assisted living and memory care communities, announced the recent purchase of a property in Seattle.
The Seattle location is the latest addition for the company, which has implemented a growth plan to serve the increasing need for senior housing throughout the West Coast. Set to open autumn 2013, the new community will feature assisted living and memory care apartments. The new Seattle community will be the thirteenth Aegis Living community in the Puget Sound region, which also operates 16 communities in California and Nevada, and has plans for four other communities.
Aegis Living purchased the property, located in Seattle at 22nd and Madison, and has contracted with Andersen Construction Co., a third generation family-owned company, which will begin groundbreaking this month. Architectural services were provided by Via Architects' Seattle office, civil and structural engineering by KPFF and landscape design by Harrison Landscape Design. Financing will be provided by Wells Fargo.
The community will feature expansive common areas and a variety of apartment styles, including 75 assisted living apartments and 29 specially designed Life's Neighborhood apartments serving residents living with memory loss.
The new Seattle community, Aegis on Madison, will include a wide array of amenities including a private movie theater, library, man cave, spa suite and sky lounge with panoramic views of the city, lake, parks and mountains. Aegis residents will be encouraged to enjoy a large variety of services including the demonstration kitchen, game room, fitness center, activity garden and outdoor sensory garden for memory care. The community will also include secured underground parking and will offer a variety of dining options for residents including patio dining, private dining room, and bistro.
Sabra Expands Relationship with Aurora Health Management
Sabra Health Care REIT Inc. announced the acquisition of four skilled nursing facilities in two separate transactions.
On June 1, 2012, Sabra acquired three skilled nursing facilities in a sale-leaseback transaction with affiliates of Aurora Health Management LLC for $21.8 million. Two of the facilities are located in Connecticut and the third is located in New Hampshire. Collectively, the facilities have 327 beds.
In connection with the acquisition, Sabra amended its existing master lease with Aurora to include these three facilities with the two facilities we currently lease to Aurora and to extend the term by six months. The Aurora master lease has an initial term of 15 years with two five-year renewal options and contains fixed annual rent escalators of 2.5 percent. With the addition of these facilities, the Aurora portfolio will provide an initial yield on cash rent of 10.18 percent and annual lease revenues determined in accordance with GAAP of $4.6 million. The purchase price was funded with available cash and proceeds from our secured revolving line of credit.
In a separate deal, Sabra acquired a 120-bed skilled nursing facility located in Virginia for $5.7 million. Concurrently with the purchase, the firm entered into a triple-net lease agreement with affiliates of Trinity Health Systems LLC. The lease has an initial term of 15 years with two five-year renewal options and provides for annual rent escalators equal to the greater of the change in the Consumer Price Index or 3.0 percent, resulting in annual lease revenues determined in accordance with GAAP of $0.8 million and an initial yield on cash rent of 11.0 percent. In addition, we have provided the tenant with an improvement allowance of up to $0.5 million. The purchase price was funded with available cash and proceeds from our secured revolving line of credit.