By Ioana Neamt, Associate Editor
National Health Investors Inc. (NHI), a Murfreesboro, Tenn.-based REIT, is committed to providing better care for our seniors. The company has recently acquired two senior living communities in Oregon and Michigan, for a combined price of $12.7 million.
These latest acquisitions enforce NHI’s existing partnership with California’s Chancellor Health Care—the two entities have five senior living communities under their care—and establish a new partnership with The Brook Retirement Communities of Michigan.
“We are very happy to be expanding our relationship with Chancellor Health Care with the acquisition of Golden Age, and to add a new partner, The Brook Retirement Communities,” Eric Mendelsohn, president & CEO of NHI, said in a statement. “These acquisitions are representative of our desire to continue our practice of partnering with strong regional operators.“
NHI has purchased the following properties, in two separate transactions, as follows:
- Golden Age Senior Living in Portland, Ore. – a 40-bed memory care community renovated in 2010. The 88 percent-occupied asset was purchased by NHI for $6.7 million, and will be leased to Chancellor Health Care for 15 years. The lease also includes renewal options at an initial rate of 7.75 percent, plus annual escalators. The GAAP (generally accepted accounting principles) lease yield is 8.9 percent;
- The Brook of Roscommon in Roscommon, Mich. – NHI acquired the 13-year-old property for $6 million. The 42-unit independent and assisted living community is 95 percent occupied and mostly private-pay. With a GAAP lease yield of 8.6 percent, the facility will be leased to The Brook Retirement Communities for ten years, with renewal options, at an initial lease rate of 7.5 percent—plus annual escalators.
The purchase of the two senior living communities was funded with cash on hand and borrowings from NHI’s revolving credit facility, according to the company.