Sunrise Assisted Living Inc (SRZ) announced last week the receipt of approximately $8.3 million of proceeds resulting from the refinancing of the existing debt of one of its joint ventures. As disclosed last week by Ventas, Inc., a venture owned 85 percent by Ventas and 15 percent by Sunrise closed eight first-mortgage loans with Freddie Mac, secured by eight senior housing communities managed by Sunrise, aggregating $126 million. Proceeds of the new $126 million Freddie Mac loan were used to repay in full $71 million of existing debt of the venture which was secured by the same eight assisted living communities and was scheduled to mature in mid-2009. The balance of the new loan proceeds was distributed pro-rata to Ventas and Sunrise, with Sunrise’s portion totaling approximately $8.3 million.
“We are pleased that Freddie Mac recognized the strength of this portfolio of our core management product in this difficult economic environment,” said Mark Ordan, Sunrise’s chief executive officer.
On a preliminary basis, Sunrise expects to recognize approximately $8.3 million in equity in earnings as a result of this transaction in the fourth quarter.
To learn more about Sunrise, please visit http://www.sunriseseniorliving.com.