Just as HCP, Inc. is about to spin off its large skilled nursing portfolio into a new REIT, it has closed a smaller, but large in today’s M&A market, acquisition of a portfolio of seven assisted living and memory care communities with 526 units in Maryland and Virginia. The price was $186.25 million, which comes in at $354,400 per unit, much higher than the average price per unit of $198,000 for the past four quarters, but near the levels we have been seeing for some good portfolios of late. The properties were built between 1993 and 2013, and talking to other buyers it appears that occupancy was not quite stabilized, so there should be room for improvement for the new operator, Senior Lifestyle Corporation, which will partner with HCP. We also understand from market participants that the in-place cap rate was just above 6.0%, but that with projected occupancy increases, that would end up being much higher on a pro forma basis. The sellers were Morningside House Senior Living and Harrison Street Real Estate Capital, and it may not be a coincidence that six years ago Harrison Street purchased six assisted living communities with 480 units in Maryland and Virginia for $113 million at an 8.1% cap rate. If these are six of the seven currently sold, that is a great return for the private equity firm. Lisa Widmier and Matthew Whitlock of CBRE represented the seller in the transaction.