The JER transaction was the largest of the investments reported by Nationwide, which acquired JER's entire interest in the joint venture. Nationwide now owns all of the venture's 46 assisted living and Alzheimer facilities, which are master leased to and operated by Alterra Healthcare Corp. Occupancy is 85% at the properties, which comprise 1,552 units in 12 states. Nationwide and JER acquired the facilities just before Alterra filed for bankruptcy, but Douglas M. Pasquale, NHP's president and CEO, says the Alterra portfolio has shown steady improvement in operations ever since the current management team led Alterra out of bankruptcy in 2003.
As part of its acquisition of the JER interest, Nationwide assumed JER's share of the secured debt the joint venture had in place of approximately $45 million. The two companies established the joint venture in 2001, with Nationwide holding a 25% equity interest and JER owning the remaining 75%. Nationwide, which invests in senior housing and long-term care facilities, has investments in 423 properties in 39 states.
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