Sunrise Senior Living, Inc., announced Tuesday that on January 10, the company completed a purchase and sale agreement with a subsidiary of CNL Lifestyle Properties and an affiliate of Arcapita, which was Sunrise's joint venture partner in 29 Sunrise-managed communities. As part of the transaction, Arcapita sold its 90% ownership interest in the joint venture for $262 million to a new joint venture between CNL and Sunrise.
Sunrise contributed its interest in the previous joint venture for 40% ownership interest in the new venture. The portfolio was valued at approximately $630 million (excluding transaction costs). Sunrise also announced that, as part of its new joint venture agreement with CNL, the company will have the option to purchase CNL’s interest in the joint venture beginning from the start of year three to the end of year six.
“This transaction, which includes an option for Sunrise to purchase the balance of this great portfolio, is a major step toward our announced goal of maximizing our real estate ownership,” Sunrise CEO Mark Ordan said.