CNL Properties Trust, a real estate investment trust (REIT) based in Orlando, Fla., plans to acquire five senior living communities from affiliates of Primrose Retirement Communities LLC for approximately $84 million.
The transaction, which is not expected to close until the first quarter of 2012 and is subject to due diligence completion and other factors, would be the REIT’s first acquisition.
CNL would then own Casper Senior Living in Casper, Wyo., Grand Island Senior Living in Grand Island, Neb., Sweetwater Senior Living in Billings, Mont., Marion Senior Living in Marion, Ohio, and Mansfield Senior Living in Mansfield, Ohio.
“We believe this transaction is an attractive initial acquisition as we begin to build our portfolio of senior living communities within CNL Properties Trust,” said Stephen H. Mauldin, president and chief operating officer of CNL Properties Trust, in a statement. “Primrose has successfully developed and operated senior living communities for more than two decades, and CNL Properties Trust’s investment in these high quality, stabilized properties is a fitting launch for our fund, while also assisting Primrose’s expansion plans.”
Primrose, which owns a total of 26 senior living communities, will continue to operate the five communities under a long-term lease agreement with CNL properties Trust.
As of Dec. 1, 2011, the communities were 96% occupied.
Written by Alyssa Gerace