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$211m sale is down-REIT first.

CHEVY CHASE, MD: CapitalSource Inc. announced that its newly created limited liability company, CSE SNF Holdings LLC, has completed its purchase of 37 skilled nursing facilities and one assisted living facility for $211 million.

The transaction was the company's first structured as a "down-REIT", which involved paying a significant portion of the purchase price in the form of interests in CSE SNF Holdings LLC that could then be exchanged for shares of CapitalSource's common stock.

This deal structure enabled the property owners to cash out as much equity as they desired or defer taxes on capital gains by retaining their interests in CapitalSource's new down-REIT limited liability company.

The 38 facilities had been owned by five companies, which had leased their operations to non-profit entities. All properties will continue to be managed by Senior Health Management LLC.
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Title Annotation:CSE SNF Holdings LLC
Publication:Real Estate Weekly
Article Type:Brief Article
Geographic Code:1USA
Date:Feb 8, 2006
Previous Article:Fremont's $21m aquisition loan.
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