Emeritus Corporation, a national provider of assisted living and memory care services, has signed two agreements with affiliates of HCP, Inc., to lease a total of 27 senior living communities. This transaction was previously announced on August 31 to lease 26 communities.
The 27 communities are located in 13 states and consist of approximately 3,239 units, comprised of 2,021 assisted living, 631 memory care, 450 skilled nursing, and 137 independent living units.
The terms of the lease agreements provide for an initial term of 15 years with two available extension options of 10 years each. One of the lease agreements contains a purchase option on 10 of the communities, exercisable beginning in year 11 and extending through the remaining initial term of the lease. The transaction is subject to several customary closing conditions that include, among others, licensing and transition requirements.
"These communities compliment our growth strategy in markets where we currently operate, and we will leverage our existing infrastructure to efficiently operate these communities," said Emeritus Chairman and Co-CEO Dan Baty. "Additionally, this transaction represents a significant opportunity to create value for both HCP and Emeritus, as we have demonstrated our ability to improve operations at similarly situated communities."