The new venture replaces a previous joint venture betweenMcLean, VA-based Sunrise, which was a minority equity partner, andother private equity partners. CalPERS, a public pension fund, haspreviously stated that it would invest $200 million in seniorhousing across the country. This is its first investment inassisted living. The existing residences, which are Sunriseprototype properties, have a capacity for 648 residents and arespread throughout six states--two in New Jersey and one each inCalifornia, Connecticut, Illinois, New York and Virginia.Locally-based AEW represented CalPERS in the transaction.

The financing was backed by Fannie Mae, which invested $81million in seven non-recourse first mortgage loans originated byGlaser Financial. According to a released statement, this is amongthe largest loan funded by Fannie Mae in the assisted livingfield.

CalPERS acquired an 80% interest in the venture and Sunrise hasa minimum 20% interest. Sunrise will continue to operate thecommunities under long-tern management agreements.