MURFREESBORO, TN - National Health Investors, Inc. announced the $12 million acquisition of a 120-unit Regency Pointe Retirement Community in Rainbow City, Alabama and a $2.5 million commitment to a second mortgage loan for the construction of a new senior living campus in Naples, Florida.
Justin Hutchens, NHI’s CEO and President, said, "We are pleased to enter into this new relationship with Discovery Senior Living, a recognized leader in the development, marketing and management of senior housing communities for nearly 20 years."
Built in 2003, Regency Pointe has 72 rental independent living units, 36 assisted living units and 12 memory care units, altogether having a current occupancy rate of 87%. The new manager, Discovery Senior Living ("Discovery") of Bonita Springs, Florida, is leasing the community for an initial 15-year term with options to extend. Annual rental income to NHI will be $942,000 plus fixed escalators. NHI has committed to Discovery a lease incentive amount up to $2.5 million available to be drawn over a three-year period based on the achievement of a specified lease coverage ratio after giving effect to the increased rent on such lease incentive amount. The purchase of Regency Point was funded from borrowings on NHI’s revolving credit facility.
Additionally, NHI has committed a $2.5 million second mortgage loan to Discovery for the construction of a new senior living campus in Naples, Florida. The loan requires interest-only monthly payments at an annual rate of 12% and matures in five years.
NHI is a real estate investment trust specializing in financing healthcare real estate by purchase and leaseback transactions, RIDEA transactions and by mortgage loans. NHI’s investments include assisted living, senior living campuses, independent living, skilled nursing facilities, medical office buildings, and hospitals.