MAPLE GROVE, MN-Dallas-based Capital Senior Living Corp. has leased the 179-capacity Rose Arbor community at 16500 92nd Avenue N. from an affiliate of Ventas Inc., which is based in Louisville, KY. This represents Capital's ninth lease with Ventas.
Ventas acquired Rose Arbor last week for $19.1 million from an undisclosed seller. The community was built in 2002, according to Lawrence A. Cohen, Capital's CEO. In addition to owning, developing in joint venture, and managing senior living facilities, he says Capital leases such properties from other owners under agreements that also include management.
"We'll pay an initial rent equal to 8% of the acquisition price," Cohen tells GlobeSt.com, "and the lease term is for 10 years with two five-year renewal options. The agreement also includes some conditional escalators."
Rose Arbor consists of 65 independent living, 30 assisted living, and 42 memory care units for a total capacity of 179 residents. It is currently 98% occupied. First-quarter revenue at the facility was approximately $4.7 million. Earnings for the quarter were $1.9 million before interest, taxes and other expenses.
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