Senior Housing Properties Trust (NYSE: SNH) announced an agreement earlier this week to acquire 20 senior living communities for approximately $304 million. The 20 communities consist of 2,111 living units and include 814 independent living apartments, 939 assisted living suites, 311 suites which offer specialized Alzheimer’s care and 47 skilled nursing beds. The communities are located in a 5 state footprint and include North Carolina (seven communities); South Carolina (five communities); Florida (four communities); Virginia (two communities) and Georgia (two communities).
Fifteen of the 20 communities costing approximately $211.5 million are currently expected to be leased to a taxable REIT subsidiary, or TRS, of SNH and managed by Five Star Quality Care, Inc. (NYSE: FVE), or Five Star, under a long term management contract. These 15 communities are currently approximately 85%. The remaining five communities which will cost approximately $92.5 million and are currently 97% occupied, are expected to be leased to Five Star and added to one or more of the combination leases currently in effect between SNH and Five Star.
The transaction is expected to close in Q2 2011.