American Retirement Corporation Reaches Agreement in Principle to Lease 917 Unit Senior Living Community in Richmond, VA.NASHVILLE, Tenn.--(BUSINESS WIRE)--Sept. 3, 1997--American Retirement Corporation (NYSE NYSE See: New York Stock Exchange : ACR See riser card. ) today announced it has reached an agreement in principle to lease and operate Imperial Plaza, a 917 unit senior living community located in Richmond, Virginia Richmond IPA: [ɹɯʒmɐnɖ] is the capital of the Commonwealth of Virginia, in the United States. . The Company anticipates completing the acquisition in the fourth quarter of 1997. Imperial Plaza has 778 independent living apartments and 139 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. units (including 32 assisted living units that are nearing completion), and is situated on a 30 acre campus in an established residential neighborhood. The community is currently 99.2% occupied with a waiting list. The Company anticipates that the acquisition will be profitable immediately. The Company will acquire Imperial Plaza under an 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. having an initial term of 20 years, with a seven-year renewal option. The Company will have the option to acquire the community at its fair market value at specified times. In addition, the terms of the lease arrangement include a commitment by the lessor to fund a $3.5 million capital expenditure program. In connection with the lease, the Company will also purchase 12 acres of land located on the Imperial Plaza campus, which is zoned to allow for additional senior living capacity. 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. stated "Imperial Plaza is a regional landmark and will serve as an excellent foundation for the establishment of a senior living network in the Richmond area. Having managed Williamsburg Landing in Williamsburg, Virginia Williamsburg is a city located on the Virginia Peninsula in the Hampton Roads region in southeastern Virginia. As of the 2000 census, the city had a total population of 11,998. , for over 12 years, ARC is well-acquainted with this quality market. The transaction is consistent with our stated plan of seeking out unique opportunities to enter new markets through the strategic acquisition of major communities. This particular acquisition also includes expansion potential as well as ancillary service opportunities." American Retirement Corporation is a national senior living and health care service company providing a broad range of care and services to the elderly, including independent living, assisted living, skilled nursing, and home health care services. The Company currently operates 22 senior living communities in 12 states with an aggregate capacity of approximately 5,800 residents. The Company currently has under construction or development 27 additional assisted living residences and expansion projects at eight of its owned or leased retirement communities and one of its managed communities, which in aggregate will add additional resident capacity of 3,200. The Company also owns ten home health care agencies and manages five others for third- parties. This press release contains forward-looking information made pursuant to the safe harbor 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. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These forward-looking statements may be affected by certain risks and uncertainties described in the Company's filings with the Securities and Exchange Commission. The Company's actual results could differ materially from such forward-looking statements. CONTACT: American Retirement Corp., Nashville Bill Sheriff, 615/221-2259 or George Hicks, 615/221-2260 |
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