Chartwell Retirement Residences (TSX:CSH.UN), a Canada-based owner-operator of retirement communities, has announced the sale a portfolio of four of its U.S.-based properties for a total of $136.1 million. The properties are being acquired by a joint venture partnership between Focus Healthcare Partners and Garrison Street Partners. Focus Healthcare Partners is a current owner of senior living properties including assisted living, skilled nursing and CCRCs.
The portfolio comprises 827 units in total among the four properties, which are located in Alabama, Michigan, Oklahoma and Tennessee. The properties are managed currently by Brookdale Senior Living. The new owner has not indicated whether Brookdale will continue as operator.
Currently, the portfolio holds existing mortgages of $86.4 million bearing interest at a weighted average of 6.27% per annum, maturing in June 2016. The mortgages will be discharged at closing, Chartwell said in its announcement of the deal, which the company expects to close in the third quarter of 2014.
Chartwell says it is selling the properties to focus on its core states in the U.S.
“This transaction is in line with our strategy to concentrate our U.S. investments in our core states of Florida, Texas and Colorado,” said Brent Binions, Chartwell’s President and CEO.
Last year, Chartwell sold seven properties in non-core states to Brookdale Senior Living for $81 million, among its property transactions. In 2012, it sold 6 U.S. properties to Harvest Facility Holdings for $165.5 Million.
Written by Elizabeth Ecker