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SEATTLE-Emeritus Corp. and HCP Inc. have agreed to purchase 142 senior housing communities owned by a joint venture composed of Emeritus, Blackstone Real Estate Partners, certain former tenants-in-common and an investment fund affiliated with Dan Baty, Emeritus’ chairman. Emeritus owns a roughly 6% interest in the Blackstone joint venture and has been operating the communities since 2010 under management agreements for a fee equal to 5% of collected revenues. GlobeSt.com was unable to reach the parties before deadline to determine where the communities being sold are located or any other unifying features.

Once the transaction is consummated, HCP will acquire 133 of the communities for an aggregate purchase price of $1.7 billion consisting of cash and the assumption of existing debt. Emeritus will receive cash of approximately $140 million, consisting of approximately $40 million for the firm’s interest in the Blackstone JV and an incentive payment of approximately $100 million based on the final rate of return to the Blackstone JV’s investors. The final closings for these transactions are expected to be completed in the fourth quarter of this year.

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