ElderTrust expands portfolio in Massachusetts market by acquiring four
properties
Acquisition Highlights
-- Acquired interests in three prominent Massachusetts assisted living
facilities and one independent living facility.
-- The properties will be leased to a newly-formed joint venture majority
owned by Genesis Health Ventures, Inc.
-- Investment of $41 million in total property value of $65 million
KENNETT SQUARE, Pa., Dec. 1 /PRNewswire/ -- ElderTrust (NYSE: ETT), a
healthcare real estate investment trust, announced today its investment in
three assisted living facilities and one independent living facility, all in
the Boston, Mass., metropolitan area. Two of the properties were acquired
directly and two through the acquisition of 99% limited partnership interests
in joint venture entities that were formed to acquire the properties. The
general partner in the joint venture entities is Mr. Edward B. Romanov, Jr.,
ElderTrust's President & Chief Executive Officer. ElderTrust's investment in
the $65 million portfolio is $41 million consisting of the assumption of
$15 million in existing mortgage debt, $3 million in seller-provided financing
and $23 million in cash.
The four senior living communities will be subject to long-term lease
agreements with a newly-formed joint venture consisting of Genesis Health
Ventures, Inc., who will also manage the properties, and an unrelated third
party.
Management Comments
"The acquisition of these senior living communities represents an
excellent investment in high quality, newly constructed projects where
development of new competing facilities will be very difficult," said Mr.
Romanov.
Properties
These four senior living communities were purchased from entities owned by
National Development of New England, a developer of senior living communities,
and Alan Solomont and Susan Bailis, the former principals of the ADS Group and
other investors. The properties include: Heritage at Cleveland Circle in
Boston, Heritage at Vernon Court and Cabot Park Village both in Newton, and
Heritage at North Andover.
Heritage at Cleveland Circle, opened in 1994, is located on the site of a
former Jewish community center on the Boston-Brookline town line. It features
assisted living housing, a 95 child pre-school, and a satellite community
center. This residence has served as a national model for intergenerational
programming.
Heritage at Vernon Court, located on the former site of the city of
Newton's public library, was named 1995's best assisted living community in
the country by the National Council on Seniors' Housing. The development of
this assisted living residence included the renovation of the Vernon Court
apartments built in 1905.
Cabot Park Village, opened in 1996, is an independent apartment community
located adjacent to Cabot Park in the Newtonville section of Newton. The
community appeals to active seniors and features a fitness center, pool,
putting green and walking trails.
Heritage at North Andover, located on Chickering Road in North Andover,
was developed in 1995 on the site of a former hotel. The project includes
assisted living apartments and a specialty area for residents with memory
impairment.
ElderTrust is a real estate investment trust that invests in real estate
properties used in the healthcare services industry, principally along the
East Coast of the United States. Since commencing operations in January 1998,
the Company's has acquired interests in a portfolio of 31 buildings and has
loaned $47.5 million in construction and term financing on 10 additional
healthcare facilities.
SOURCE ElderTrust
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Related links:
http://www.eldertrust.com
CONTACT:
D. Lee McCreary, Jr., Senior Vice President &
Chief Financial Officer of ElderTrust, 610-925-4200
NOTE TO EDITORS: For more information on ElderTrust via fax at no
charge, please dial 1-800-PRO-INFO and enter ticker symbol ETT,
or visit ElderTrust's Web site at http://www.eldertrust.com
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