Joint Venture for Acquisition of Two Senior Apartment Communities located in Western New York
Wheatfield, Feb.7, 2013 /PRNewswire/ — Calamar, a full service real estate organization with divisions in construction, development, property management and investment and financing announced today that effective as of February 1, 2013, it entered into a joint venture with Care Investment Trust Inc. (OTCQX: CVTR) (“Care” or the “Company”), a real estate investment and finance company that invests in healthcare real estate. Affiliates of Calamar Enterprises, Inc. (“Calamar”), owned 75% by affiliates of Care and 25% by affiliates of Calamar, for the acquisition of two senior apartment communities from affiliates of Calamar with an aggregate value of $23.3 million. Simultaneously with the acquisition, Calamar has entered into a ten-year management agreement with Care for the management of the Properties. Both properties were developed by Calamar within the last 5 years and had an average occupancy in excess of 95% as of December 2012.
Calamar contributed the properties to the joint venture in exchange for its 25% ownership interest and Care funded its 75% portion of its equity investment with cash on hand. The joint venture, through subsidiaries, assumed two loans with an aggregate principal balance of approximately $18.3 million, provided by Liberty Bank.
Salvatore (Torey) V. Riso, Jr., President and Chief Executive Officer of Care, stated, “Care is very pleased to partner with Calamar who has established itself as providing high quality, affordable, communities to seniors. We look forward to a rewarding and long term relationship with Calamar”.
Kenneth M. Franasiak, President and Chief Executive Officer of Calamar, said, “We are looking forward to a long and mutually beneficial relationship and anticipate future opportunities together”.
— Establish a strategic relationship with Calamar, an organization which has been highly successful in owning and operating senior housing communities and other real estate assets.
— Acquire two stabilized senior housing apartments in Western New York, through a joint venture with Calamar containing an aggregate 202 units that are well-positioned for high occupancy and consistent financial performance within their communities.
–Expect to receive in excess of a 12% cash on cash return in the first year and 100% of net cash flow upon a sale of the properties until achieving a threshold return. Net cash flows to be shared between Care and Calamar pursuant to a waterfall set forth in the joint venture agreement.
About Care Investment Trust Inc.
Care Investment Trust Inc. is a real estate investment company that invests in healthcare real estate including assisted-living, independent-living, memory care, skilled nursing and other healthcare and seniors-related real estate assets in the United States of America.
About Calamar Enterprises, Inc.
Calamar is a full-service real estate firm comprised of construction, development, property management and finance & investment divisions for commercial and large-scale residential properties in the Northeast & Midwest regions.
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Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This release contains “forward-looking statements” which involve risks, uncertainties and contingencies, many of which are beyond Care Investment Trust Inc.’s control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words “anticipate,” “believe,” “estimate,” “expect,” “plan,” “target,” and similar expressions are generally intended to identify forward-looking statements. Such risks are set forth under the captions “Forward-Looking Statements” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” (or similar captions) in Care’s most recent Annual Report on Form 10-K and 10-K/A and its quarterly reports on Form 10-Q, and as described in the Company’s other filings with the Securities and Exchange Commission. Economic, business, funding market, competitive and/or regulatory factors, among others, affecting Care Investment Trust Inc.’s businesses are examples of factors that could cause actual results to differ materially from those described in the forward-looking statements in addition to those factors specified in Care Investment Trust Inc.’s Annual Report on Form 10-K and 10-K/A, as well as Care Investment Trust Inc.’s Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as to the date of this press release. We cannot guarantee the accuracy of any such forward-looking statements contained in this press release, and Care Investment Trust Inc. is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
For more information on the Company, please visit the Company’s website at www.carereit.com
For more information on Calamar, please visit Calamar’s website at www.calamar.com