CHICAGO-Locally-based Ventas Inc. will acquire the minorinterest in 58 senior living communities from its partner SunriseSenior Living Inc. Ventas, which was already the majority owner ofthe properties, will provide $186 million, including $145 millionin mortgage debt, for the purchase.


McLean, VA-based Sunrise’s minority interests to be acquired byVentas represent between 15% and 25% ownership interest in thecommunities. Sunrise will continue to manage the properties, aswell as another 21 properties owned by Ventas. The two companiesreached an agreement, with Ventas not exercising performance-basedtermination rights, and Sunrise reducing its management fee to 3.5%for 2010 and 3.75% for 2011.


Mark Ordan, Sunrise CEO, said the agreement sets newperformance, operating and reporting thresholds. “If met, (thethresholds) will enable us to manage these assets for many years,and avoids the previously announced Ventas performance terminationrights on a significant number of assets. In addition, selling ourjoint venture interest to Ventas brings Sunrise additional funds toimprove our balance sheet and provides a foundation for carefulgrowth,” he said in a statement.


Ventas has invested capital in the assets through the years,said Raymond Lewis, EVP and CIO for the company – and it has paidoff. “In the third quarter, we have seen occupancy continue toincrease and remain above 89% in the stabilized portfolio,” Lewissaid.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.