X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEWTON, MA-Senior Housing Properties Trust, a locally headquartered real estate investment trust, closed an $86.6 million purchase and lease transaction with NewSeasons Assisted Living Communities Inc., which owns and operates assisted-living communities in Pennsylvania and New Jersey.

In the transaction, Senior Housing Properties purchased 10 of these communities with resident capacity of 1,019. Simultaneously, NewSeasons leased these communities from Senior Housing Properties for an initial term ending in 2017, plus tenant renewal option terms thereafter for a total of 30 years. NewSeasons is a subsidiary of Independence Blue Cross, a large regional health insurance company based in Philadelphia.

The rent payable to Senior Housing Properties will average approximately $9.3 million annually during the initial lease term. Six of the 10 communities which Senior Housing Properties has purchased are located in Pennsylvania and four are in New Jersey. The occupancy of these communities at present is approximately 81%. One hundred percent of the revenues are paid by residents from their private resources.

In addition to the transaction Senior Housing, NewSeasons and Independence Blue Cross have entered an agreement to add up to four assisted-living communities with resident capacity for 540 to the deal. These four communities are currently encumbered by mortgage debts. Senior Housing Properties will purchase these communities if and when these mortgage debts are prepaid or assumed on terms mutually acceptable to the three companies and the lenders.

If all four of these communities are purchased, Senior Housing’s purchase price will be $28.4 million, the communities will be added to the lease for the 10 properties and the rent payable will be increased pro rata to the purchase price paid.

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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

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 © 2020 ALM Media Properties, LLC. All Rights Reserved.