Brookdale Senior Living, Nashville, said it has agreed to acquire 21 senior-living communities in 11 states from McLean, Va.-based Sunrise Senior Living for $204 million. The deal's closing, which is expected on Nov. 16, is dependent on Sunrise obtaining consent from the company's lenders under its bank credit facility by Oct. 19.
Sunrise said the transaction is another step in its restructuring process, and that it will provide the company with the needed funds to pay down its bank line and also for additional working capital. Sunrise said it expects to record an impairment charge of about $7 million for the third quarter of 2009 to write down five of the 21 communities to fair value. After the closing, Sunrise expects to record a gain on the sale of real estate of about $50 million.
The communities—which include independent-living, assisted-living and Alzheimer's units—are located in California, Colorado, Connecticut, Georgia, Indiana, Michigan, New Mexico, North Carolina, Ohio, Pennsylvania and Virginia.
“Many of these communities are in markets where we have either built or are building a continuum network,” Brookdale CEO Bill Sheriff said in a news release about the purchase.