Prudential Mortgage Capital Orginates $74.6 Million Senior Living Mortgage Loan

Business Wire

January 12, 2004

NEWARK, N.J., Jan 12, 2004 (BUSINESS WIRE) -- Prudential Mortgage Capital Company announced it has closed $74.6 million in fixed-rate financing for CNL Retirement Properties, Inc., secured by a portfolio of senior living communities throughout the United States. Prudential Mortgage Capital Company is the commercial mortgage lending business of Prudential Financial, INC. (NYSE:PRU).

The senior living portfolio comprises 1,098 beds in 12 communities on the East Coast, and in Michigan and Washington. With occupancy of 86.4 percent, approximately 54 percent of the units are considered assisted living, 26 percent are independent living, and 20 percent are reserved for residents with Alzheimer's disease and other forms of memory impairment. CNL acquired the properties from Sunrise Senior Living (NYSE: SRZ), which will continue to manage them pursuant to long-term management contracts.

The $74.6 million loan represents 50 percent of the acquisition cost of the properties. The seven-year loan, with interest of 5.96 percent, amortizes over 25 years after two years of interest only. Each of the assets in the pool is cross-collateralized and cross-defaulted. Additionally, the terms of the loan provide for flexible release and substitution provisions, allowing the borrower flexibility to manage the assets in the portfolio. Thomas Goodsite, a principal of Prudential Mortgage Capital based in Atlanta, originated the loan.

CNL Financial Group, Inc., one of the largest privately held real estate investment and financial services companies in the United States, is comprised of more than 785 associates working in separate subsidiaries or affiliated companies. Founded in 1973 by James M. Seneff, Jr., CNL has more than a quarter-century track record of growth through all market cycles. CNL and the entities it has established have more than $5.3 billion in assets, representing interests in approximately 1,850 properties and have provided approximately 1,000 commercial mortgage loans to operators in 49 states. In addition, CNL acts as an advisor to private and institutional investors.

CNL Retirement Properties, Inc. is an unlisted real estate investment trust (REIT) controlled by CNL Financial Group, Inc., which acquires properties and leases them on a long-term, triple-net basis. The properties may include congregate living, assisted living and skilled nursing facilities, continuing care retirement communities and life care communities, and medical office buildings and walk-in clinics, and similar types of healthcare related facilities.

Sunrise Senior Living is the nation's largest provider of senior living services. Founded in 1981, the McLean, Va.-based Company, which employs more than 30,000 people, operates over 380 senior living communities either open or under construction in the United States, United Kingdom and Canada with a combined resident capacity of more than 42,000.

Prudential Mortgage Capital Company is a national full-service, commercial and multifamily mortgage finance business, originating mortgage loans for Fannie Mae and FHA programs, the capital markets, Prudential's general account, and other institutional investors. The company, with $38 billion in assets under management and administration as of September 30, 2003, offers fixed and floating rate loans, mezzanine lending, structured financing, interim/bridge lending; affordable housing loans and forward commitments. For more information, visit www.prudential.com/mortgagecapital.

Prudential Financial companies, with approximately $421 billion in total assets under management as of September 30, 2003, serve individual and institutional customers worldwide and include The Prudential Insurance Company of America, one of the largest life insurance companies in the U.S. These companies offer a variety of products and services, including life insurance, property and casualty insurance, mutual funds, annuities, pension and retirement related services and administration, asset management, securities brokerage, banking and trust services, real estate brokerage franchises and relocation services. For more information, visit www.prudential.com.

SOURCE: Prudential Mortgage Capital Company

CONTACT: Prudential

Theresa Miller, 973-802-7455

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