Capital Senior Living Sells JV Interest for $17 Million, Looks for Acquisitions

Capital Senior Living (NYSE:CSU) sold its 5% interest in four senior living communities to Health Care REIT, Inc. (NYSE:HCN) for $17 million on Monday.

As part of the sale, CSU leased the communities from HCN.

“We are extremely pleased with the returns the Company and its joint venture partner received in this transaction,” said Lawrence A. Cohen, Chief Executive Officer of the Company.  “Proceeds from this transaction and our available cash will provide equity for direct acquisitions of senior living communities to strategically enhance the geographic concentration of our existing operating platform.”


The Spring Meadows properties have approximately 625 units with a combined resident capacity of 758 said the company.  The properties include two independent and assisted living communities in Illinois, one independent and assisted living community in Connecticut and one assisted living community in New Jersey. Current occupancy of the combined portfolio is 82.6%, as two of the communities just completed conversion of 28 vacant units to memory care units and are awaiting final state approval to move residents into the newly-converted units.

According to Lawrence, CSU plans to use the cash from the transaction to provide equity for senior living community acquisitions.  “We are actively pursuing a number of opportunities and are conducting due diligence on a few of the most attractive transactions,” he said.

From an original investment of $1.3 million, CSU received proceeds, including incentive distributions, from the sale by the joint ventures of approximately $17.0 million.  After closing costs and taxes, the company received net proceeds of approximately $11.5 million from the transaction.