National Health Investors, Inc. (NYSE:NHI) announced today new
investments totaling $7.2 million. The transactions include a
purchase/leaseback of a 24-unit assisted living and memory care facility
in Minnesota with Suite Living Senior Specialty Services (formerly known
as Comforts of Home) for $4.2 million and the origination of a $3.0
million second mortgage secured by interests in three skilled nursing
facilities in Texas totaling 311 beds as part of a bridge to HUD
financing for the borrower. The investments were funded with borrowings
from NHI’s revolving credit facility and bring NHI’s total transaction
volume to date in 2010 to $103.9 million.
“We are pleased to
continue diversifying and expanding our portfolio with this additional
transaction with Suite Living and an attractive mortgage investment in
Texas. Both investments are backed by strong operators with good
locations and were sourced by our in-house team.”
The Suite Living facility is six years old and leased for a term of 15
years at an initial lease payment of $420,000 plus annual fixed
escalators. The purchase/leaseback transaction brings the total recent
transactions with Suite Living to $21.4 million, including four assisted
and memory care facilities totaling 126 beds and a total initial lease
payment of $2,140,000 plus annual fixed escalators. The $3.0 million
second mortgage includes a term of five years, a fixed interest rate of
fourteen percent and a one percent origination fee.
Justin Hutchens, NHI President and COO, noted, “We are pleased to
continue diversifying and expanding our portfolio with this additional
transaction with Suite Living and an attractive mortgage investment in
Texas. Both investments are backed by strong operators with good
locations and were sourced by our in-house team.”