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[IMGCAP(1)]NEW YORK CITY-Locally based Investcorp’s US-based real estate group have recapitalized on a two-property assisted living portfolio it jointly developed in partnership with McLean, VA-based Sunrise Senior Living Inc. With this recapitalization, Investcorp fully exited its investment in both properties while Sunrise and an affiliate of Southport, CT-based Herbert J. Sims & Co. Inc. will jointly own and continue to operate both locations. An Investcorp spokesperson tells GlobeSt.com that terms of the transaction were not disclosed.

[IMGCAP(2)]Investcorp and Sunrise formed their joint venture in June 2004 to develop and operate two senior living communities for approximately $35 million. The two properties included: Sunrise of Crestwood in Yonkers; and Sunrise of Upper St. Clair, in Upper St. Clair, PA. The deal marked the first JV partnership between Investcorp and Sunrise Senior Living as GlobeSt.com previously reported.

[IMGCAP(3)]Investcorp entered the opportunity in 2004 with a business plan to develop the two properties successfully and bring them to a stabilized operating level, according to Peter Petron, principal of Investcorp’s Real Estate group. “Having achieved our stated objectives together with Sunrise, now is a natural time for us to work with them on a recapitalization of this portfolio. We look forward to future development and investment opportunities with Sunrise in the assisted living sector.”

The JV partners broke ground on the two properties shortly after acquisition. The construction of the properties was completed in late 2005. The properties achieved full occupancy in late 2006 and early 2007 and today offer residents a full range of assisted living services in state-of-the-art facilities.

“Our development joint venture with Sunrise is a good example of Investcorp’s ability to team up with best-in-class operating partners and to invest across a broad spectrum of asset classes to create value for Investcorp and our investors,” says Petron in a prepared statement. “Both properties are extremely well situated within their respective submarkets and today enjoy high occupancy levels and good operating cash flow.”

Sunrise of Crestwood is a 79-unit senior living community located immediately northeast of New York City. Sunrise of Upper St. Clair is a 73-unit assisted living community located in suburban Pittsburgh. Both properties feature studio, one-bedroom and two bedroom apartments, and are located conveniently near major state throughways with easy access to surrounding suburbs and major metropolitan areas.

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