Emeritus enters into joint venture to buy 134 senior living facilities for more than $1 billion

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Senior living and Alzheimer's care provider Emeritus Corp. disclosed Tuesday it has entered into a joint venture agreement to acquire 134 senior living communities. The deal is valued at $1.15 billion.

Emeritus entered into the transaction with Blackstone Real Estate Advisors VI, L.P., and Columbia Pacific Advisors. Blackstone will have the largest stake in the venture, with 80% of the equity; Emeritus and Columbia Pacific will each have a 10% stake. As part of the deal, Emeritus will manage the communities for a fee equal to 5% of gross revenues. An affiliate of Salem, Oregon-based Sunwest Management currently operates the facilities.

The purchase and sale agreement is subject to bankruptcy court approvals and finalization of loan modifications with the secured creditors, according to an Emeritus statement.