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.

In years one through five of the lease, Emeritus will pay annual rent of $17.5 million, $21 million, $25 million, $28 million and $30 million. After that, the rent "will increase by the greater of the increase in the CPI or 3%," according to the Emeritus filing.

The 10-year lease for the 11 facilities is the latest in a number of deals between HCP and Emeritus. Last year, for example, the Long Beach-based REIT sold 41 senior housing facilities totaling 3,732 units to the Seattle-based company for $501.5 million. The portfolio was composed of 33 facilities operated by Emeritus Corp. and eight properties operated by Summerville Senior Living Inc. of San Ramon, CA.