Real Estate Department Advises Sunrise Senior Living in Latest Joint Venture Arrangement

June 8, 2012

Sunrise Senior Living, Inc. to transfer seven consolidated communities to new joint venture, valued at approximately $226 million.

On June 7, Willkie client Sunrise Senior Living, Inc. announced that it has entered into an agreement with CHT Partners, LP, a subsidiary of CNL Healthcare Trust, Inc., to form a new joint venture to which Sunrise will contribute seven consolidated communities (consisting of 687 units) and CHT will contribute approximately $57 million. The new joint venture will be owned approximately 55 percent by CHT and approximately 45 percent by Sunrise Senior Living Investments, Inc., a subsidiary of Sunrise Senior Living, Inc. The joint venture will have a gross valuation of approximately $226 million.

Based in McLean, Va, Sunrise Senior Living operates 308 communities located in the United States, Canada and the United Kingdom, with a capacity of approximately 30,300 units. With approximately 31,600 employees, Sunrise offers a full range of personalized senior living services, including independent living, assisted living, care for individuals with Alzheimer's and other forms of memory loss, as well as nursing and rehabilitative services.

In 2011, Willkie represented Sunrise in the completion of a purchase and sale agreement and joint venture for 40 percent ownership interest in 29 Sunrise-managed properties, and in the restructuring of its equity and debt position in a portfolio of six Sunrise-managed senior living facilities.

The current deal was handled by partner Eugene Pinover and associates Daniel Backer, Brian Weinberger, Adam Feit and Edward Dix.