CapitalSource, Chevy Chase, Md., said its newly created limited liability company, CSE SNF Holdings, completed the purchase of 37 skilled-nursing facilities and one assisted-living facility for $211 million. The 38 facilities had been owned by five companies, which had leased their operations to not-for-profit companies, the company said in a news release. Senior Health Management, St. Petersburg, Fla., a management company for the long-term-care industry, will continue to manage all 38 properties. CapitalSource said the deal was the company's first structured "down REIT," or real estate investment trust, which involved paying a significant portion of the purchase price in the form of interests in CSE SNF Holdings that could then be exchanged for shares of CapitalSource's common stock. The structure of the deal allowed the property owners to cash out as much equity as they wanted or defer taxes on capital gains by retaining their interests in the new limited liability company. -- by Jessica Zigmond
CapitalSource unit purchases 38 facilities using REIT
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