Sunrise Completes Purchase-Sale Transaction, Starts New Joint Venture with CNL Lifestyle Properties

Sunrise Senior Living, Inc. (NYSE: SRZ) announced today that it has completed its previously announced purchase and sale agreement with a wholly owned subsidiary of CNL Lifestyle Properties and an affiliate of Arcapita, which was Sunrise’s joint venture (JV) partner in 29 Sunrise-managed communities.  In the transaction, Arcapita sold its 90% interest in the JV to a newly formed joint venture with CNL Lifestyle Properties (CNL) for $262 million.  The result of the transaction gives Sunrise a 40 percent ownership interest in the new venture’s portfolio which is valued at approximately $630 million.  As part of the deal, Sunrise received a long-term contract to manage the properties which have an aggregate of over 2,000 units and it has an option to purchase CNL’s interest after the end of the third year of the joint venture.  Goldman Sachs Lending Partners LLC funded $435 million of the acquisition cost.

"This transaction, which includes an option for Sunrise to purchase the balance of this great portfolio, is a major step toward our announced goal of maximizing our real estate ownership," said Mark Ordan, Sunrise’s chief executive officer. "We are very excited to be in a major partnership with CNL Lifestyle Properties and we are also very pleased by our continuing relationship with Arcapita in other Sunrise portfolios."

Click here for the Sunrise 8-K on the transaction.