X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SEATTLE-Emeritus Assisted Living says it has inked a lease-to-buy agreement for 24 senior communities with 1,651 units in six states.

The properties, previously operated by a subsidiary of Marriott International, were acquired for the subsequent lease by a joint venture that includes Fremont Realty Capital, a San Francisco based fund. An investor group led by Dan Baty, CEO of Emeritus, has a minority interest in the joint venture.

The lease is for an initial 10-year period with two 5-year extensions and includes an option to buy the properties after the third year and the right (under certain circumstances) for the landlord to cancel the lease by payment of a termination fee after the fifth year.

GlobeSt.com has put in a call to Emeritus CFO Ray Brandstrom to find out the value of the lease agreement, the third-year optional purchase price and the fifth-year termination fee. It will be added to this story when it is made available. “This is the largest single acquisition we have completed,” says Brandstrom in a prepared statement.

Since the first of the year, Emeritus says it has increased the number of communities managed by 47, representing an increase in total capacity of approximately 5,000 residents or 35%. Fremont Realty is a part of the Fremont Group, a San Francisco based private investment company.

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

Once you are an ALM digital member, you’ll receive:

  • 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

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.