Capital Senior Living Corporation (CSU) announced earlier this week that Midwest Portfolio Holdings, LP ("Midwest I"), a joint venture in which CSU held an 11 percent partnership interest, has sold five senior living communities to Health Care REIT, Inc. Upon closing the sale, the CSU leased the communities from HCN. Capital Senior Living previously managed the five communities in the joint venture under long-term management agreements and the communities being leased in this transaction have approximately 295 units and a combined resident capacity of nearly 390 residents. The portfolio includes four assisted living communities in Nebraska and one assisted living community in Iowa.
"This transaction adds significant top-line growth to the Company, as well as solid cash flow and earnings," commented Lawrence A. Cohen, Chief Executive Officer of the Company. "We can now consolidate the results of operations and benefit fully from further improvement in occupancies, margins and rental rates. These five high quality assets establish an excellent foundation for our new relationship with Health Care REIT, a leading healthcare REIT that invests across the full spectrum of senior housing and health care real estate."