MBK Real Estate of Irvine has sold its 12 senior-living communities and related operations to Senior Housing 1 LP of Atlanta for more than $100 million.
All of the facilities, which comprised the company’s senior living communities division, are in California. Several are in Orange County, including Inn at the Park in Irvine, the Wellington in Laguna Hills and Huntington Terrace in Huntington Beach.
The properties will be operated by newly formed Renaissance Senior Living LLC, which has been hired by Senior Housing 1 LP.
The Irvine-based Renaissance was formed by senior executives at MBK’s senior-living communities division.
“They left expressly to manage this company, which is basically a management spinoff,” said Tangelique Wilcox, an MBK manager. “They will also be doing development through their own independent company. It’s the same team that ran MBK’s senior-living division, but now they’ll be doing it under their own name and pursuing other third-party development.”
Renaissance will be headed by Scott Reid, its CEO, and Scott McNutt, the new company’s vice president and co-founder.
Nearly 700 employees which used to work for MBK will now become part of Renaissance’s payroll, according to Wilcox.
“The move is part of MBK’s long-term plan for future growth,” she said. “The company plans to take proceeds from the sale and reinvest it into retail entertainment and home building development activities.”
MBK plans to invest more than $200 million in retail entertainment renovations and development opportunities in the coming year.
“We’re currently looking to build our retail inventory from $160 million now to more than $500 million in the year 2000,” said Wilcox.
MBK is planning to deliver more than 300 homes in Southern California during 2000 and increase that amount to more than 550 by 2002 as a result of the senior-living communities division sale, she added.
MBK is the U.S. real estate development arm of Mitsui & Co. Ltd., a $131 billion Japanese-based conglomerate.
