LONG BEACH, CA-Locally based healthcare REIT HCP has closed a deal to lease 1,462 units of seniors housing to Seattle-based Emeritus Corp. that includes an option for Emeritus to buy the properties at a minimum of $300 million. Neither HCP nor Emeritus disclosed financial terms of the deal in recent press releases regarding the transaction, but a public filing in November by Emeritus says that the agreement includes an option for Emeritus to purchase the properties beginning at the end of the fifth year of its lease.

Under terms of the recently closed deal, Emeritus is leasing 11 facilities totaling 1,462 units in six states from HCP for a term of 10 years. The purchase option price will be based on “the greater of fair market value or $300 million,” according to the Emeritus filing. It states that $300 million is the minimum option price, and the deal specifies “an appreciation sharing arrangement if the fair market value exceeds the minimum option price.”

The 11 facilities that Emeritus is leasing from HCP are in California, Connecticut, Massachusetts, Maryland, New Jersey and Virginia. The 1,462 units and beds consist of approximately 21 independent living units, 969 assisted living units, 292 Alzheimer’s units and 180 skilled nursing beds.

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