Brookdale Senior Living (NYSE: BKD) has agreed to acquire seven senior living communities from Ontario, Canada-based Chartwell Retirement Residences for a total purchase price of $80.9 million, the company announced today.
The communities comprise a total of 613 units including 80 independent living, 493 assisted living and 40 Alzheimer’s units. Brookdale has been managing six of the communities since the company acquired Horizon Bay in September 2011. The communities are located in Alabama, Arizona, Georgia, Louisiana and Oklahoma, with two communities in Arizona and Georgia.
“The communities are well located, purpose-built, enjoy good reputations in the market and fit well with Brookdale’s existing operations. Brookdale currently manages all but the Alabama community,” said company CEO Andy Smith.
Brookdale expects to finance the transaction with $61 million of first mortgage financing (substantially through the assumption of existing debt), with the remaining balance to be paid from cash on hand.
“This acquisition is a natural step forward following the Horizon Bay acquisition to demonstrate Brookdale’s ability to execute its strategy of acquiring certain of the managed assets if and when they are sold,” Smith said.
Upon the announcement, Chartwell President and CEO Brent Binions noted the company’s focus in core U.S. states.
“The sale of this Portfolio is in line with our strategy to focus our investments in the United States in our core states of Florida, Texas and Colorado,” he said.
The transaction completion is subject to certain closing conditions and is expected to close during the third quarter of 2013.
Written by Elizabeth Ecker