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BOSTON-AEW Capital Management, the California Public Employees Retirement System and Sunrise Assisted Living Inc. have formed a joint venture to own and operate seven assisted living residences. The portfolio of residences was $115.5 million or $205,516 per unit.

The new venture replaces a previous joint venture between McLean, VA-based Sunrise, which was a minority equity partner, and other private equity partners. CalPERS, a public pension fund, has previously stated that it would invest $200 million in senior housing across the country. This is its first investment in assisted living. The existing residences, which are Sunrise prototype properties, have a capacity for 648 residents and are spread throughout six states–two in New Jersey and one each in California, Connecticut, Illinois, New York and Virginia. Locally-based AEW represented CalPERS in the transaction.

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

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

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