American Retirement Corporation Announces Acquisition of Senior Living Community.NASHVILLE, Tenn.--(BUSINESS WIRE)--Sept. 17, 1998--American Retirement Corporation (NYSE NYSE See: New York Stock Exchange :ACR See riser card. ) today announced that the Company has acquired Park Regency, a senior living community located in Chandler, Arizona Chandler is a city in Maricopa County, Arizona, USA. Chandler is one of the major suburbs of Phoenix. As of the 2000 census, the city population was 176,582. According to 2005 Census Bureau estimates, the population of the city is 234,939. , with capacity for approximately 220 residents, including 66 skilled nursing units. The acquisition also includes approximately 1.9 acres of vacant land for expansion. The acquisition was structured as a five-year operating lease Operating Lease A lease contract that allows the use of an asset, but does not convey rights similar to ownership of the asset. Notes: An operating lease is not capitalized it is accounted for as a rental expense. with five one-year renewals to the Company from an unaffiliated special purpose entity that simultaneously acquired the community from its former owners. In connection with the lease, the Company will acquire an option to purchase the community at the expiration of the lease term for a formula purchase price. W.E. Sheriff, the Company's chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , remarked "Phoenix is a very attractive senior living market and we are very pleased to add Park Regency to our portfolio. We now have capacity to serve 1,200 residents in Arizona and are positioned to realize marketing and operating synergies." American Retirement Corporation is a national senior living and health care services provider offering a broad range of care and services to seniors, including independent living, assisted living as·sist·ed living n. A living arrangement in which people with special needs, especially older people with disabilities, reside in a facility that provides help with everyday tasks such as bathing, dressing, and taking medication. , skilled nursing, and home health care services. The Company currently operates 36 senior living communities in 14 states with an aggregate capacity for approximately 11,800 residents. The Company is constructing or developing 34 additional senior living communities and expansion projects at seven of its retirement communities, which in aggregate will add capacity for approximately 4,400 residents. The Company also operates six home health care agencies, including two agencies managed for third parties. This press release contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the federal securities laws, which are intended to be covered by the safe harbors Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, those set forth under the caption "Risk Factors" in the Company's Registration Statements on Form S-1 (No. 333-23197 and No. 333-34339) and the Company's prospectus supplement, dated July 30, 1998. The Company undertakes no obligation to publicly release any revisions to any forward-looking statements contained herein to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. |
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