SEATTLE--(BUSINESS WIRE)--Emeritus Corporation (NYSE: ESC), a national provider of senior living services, announced the signing of an agreement with Columbia Pacific Advisors to manage an assisted living and memory care community. This agreement represents the third such agreement entered into between the parties since August 2010 covering three communities with 269 total units.
Under the agreements, Emeritus will manage the three communities for a monthly fee equal to 5% of gross revenues. Under related purchase rights agreements, the Company has a right of first offer to acquire or lease the communities at any time prior to the end of the 10th anniversary of the agreements. In addition, the Company has the right to share in the net proceeds from the sale of the community after achievement of a 15% internal rate of return.
Granger Cobb, Emeritus President and Chief Executive Officer stated, “Our relationship with Columbia Pacific Advisors is part of our ongoing strategy to create a built-in pipeline for growth. The right of first offer, combined with an upside sharing of investment returns, allows us to realize value beyond a simple monthly management fee. These arrangements create positive incentives to maximize the potential of these operations, which is beneficial to both parties.”
Under the terms of the agreements, the Company now manages a 101-unit assisted living and memory care community located in Federal Way, Washington, a 122-unit assisted living and memory care community located in Tucson, Arizona and a 46-unit memory care community located in Las Vegas, Nevada.
About Emeritus
Emeritus Corporation is a national provider of senior living services. Emeritus is one of the largest and most experienced operators of freestanding assisted living communities located throughout the United States. These communities provide a residential housing alternative for senior citizens who need assistance with the activities of daily living, with an emphasis on personal care services, which provides support to the residents in the aging process. Emeritus currently operates 480 communities in 42 states representing capacity for approximately 42,600 units and approximately 49,800 residents. Additional information about the Company can be located on the Internet at www.emeritus.com.