Sunrise Assisted Living Sells Eastside Property, 10 More to AEW

BELLEVUE, WA-Sunrise Assisted Living Inc. has sold its downtown Sunrise Bellevue property to Metropolitan Senior Housing LLC. The 78-room assisted living facility at 15928 NE Eighth St. sold for $10.19 million. Metropolitan is a real estate venture company formed by AEW Capital Management LP on behalf of its investment client.

This sale is part of a larger transaction in which AEW/Metropolitan is purchasing 11 assisted living facilities from Sunrise. AEW, headquartered in Boston MA, reportedly manages $5.9B in capital—invested in $9.7B of real estate assets. The first phase of the sale included 8 properties and $111 million, the second phase adds 3 more properties and brings the entire purchase to $155 million.

“Sunrise will retain a 25% interest in the venture, and its Sunrise Management Services Division will continue to operate the communities under long-term management agreements,” says Charles A. Post, senior vice president of corporate strategy and capital markets for Sunrise. Proceeds from the Metropolitan transaction will be used by Sunrise for general corporate purposes, including development of future properties.

McLean VA-based Sunrise operates 160 assisted care homes in 25 US states and the United Kingdom, with total resident capacity of more than 12,700. Of those, 101 properties are 100% owned by Sunrise. Sunrise has opened 34 new facilities over the last 12 months and expects to buy another 11-14 properties during the fourth quarter 2000. The company’s plan is to sell 20 facilities per year while continuing their operation under long-term agreements. As existing Sunrise homes are sold, it intends to replace them with a like number of new projects. “Development of new Sunrise properties continues to be the Company’s main driver of growth and our development pipeline remains strong,” said Sunrise President, Tom Newel.