Emeritus Executes Management Agreements with Columbia Pacific Advisors

Emeritus Corporation (NYSE: ESC) has announced the signing of an agreement with Columbia Pacific Advisors to manage an assisted living and memory care community.  The agreement is the third between the two companies since 2010 and the agreements cover three communities in three states with over 260 units.  Emeritus will manage the three communities for a monthly fee equal to 5% of gross revenues and has a right of first offer to acquire or lease the communities at any time prior to the end of the 10th anniversary of the agreements. In addition, the Emeritus has the right to share in the net proceeds from the sale of the community after achievement of a 15% internal rate of return.

Granger Cobb, Emeritus President and Chief Executive Officer stated, “Our relationship with Columbia Pacific Advisors is part of our ongoing strategy to create a built-in pipeline for growth. The right of first offer, combined with an upside sharing of investment returns, allows us to realize value beyond a simple monthly management fee. These arrangements create positive incentives to maximize the potential of these operations, which is beneficial to both parties.”