The residences, five located in Georgia, four in South Carolina and one in each of Florida, Alabama and Pennsylvania, were previously operated by ALC under master lease agreements with Ventas Realty and MLD.
The transaction was funded with borrowings available under ALC's $125 million revolving credit agreement.
As part of the Agreement, Ventas Realty, MLD and ALC have agreed to a mutual release of all present and future claims related to the master leases as well as those set forth in the complaint and amended complaint filed in Ventas Realty, Limited Partnership v. ALC CVMA, LLC, et al., 12-cv-03107, in the United States District Court for the Northern District of Illinois.
ALC will no longer be obligated under the master leases which provided for cash rent payments of $6.4 million and $1.6 million for the year ended December 31, 2011, and the quarter ended March 31, 2012, respectively.
"We are pleased to reach a mutually satisfactory arrangement with Ventas and to have acquired these 12 residences. While we have had some recent regulatory challenges at several of these properties, we are taking actions to address these challenges and to enhance their quality," said ALC president and chief executive officer Charles "Chip" Roadman II, M.D. "The addition of these 12 residences increases our percentage of owned properties to 82.0 percent.