MURFREESBORO, TN - National Health Investors announced a $67 million purchase of three senior living communities in North Carolina, Indiana and Tennessee in a sale-leaseback transaction with affiliates of East Lake Capital Management.
The 413-unit portfolio is 86% occupied and comprised of 205 independent living, 137 assisted living and 71 memory care units. The purchase was funded with borrowings on NHI’s revolving credit facility.
“This acquisition of high-quality senior living communities is representative of NHI’s relationship-oriented approach of partnering with experienced operators,” said Justin Hutchens, NHI’s CEO and President.
100% private-pay communities
Operated by New Horizons Senior Living, an affiliate of East Lake Capital Management
10-year lease with renewal options at a lease rate of 7% plus fixed annual escalators
8.12% GAAP lease yield derived from favorable annual rent escalators
NHI has committed to fund up to $8 million of incentive payments based upon the financial performance of the communities.
Charlotte, NC: 112 units (92 assisted living, 20 memory care), 90% occupied
Indianapolis, IN: 153 units (116 independent living, 37 memory care), 80% occupied
Nashville, TN: 148 units (89 independent living, 45 assisted living, 14 memory care), 89% occupied
National Health Investors is a real estate investment trust specializing in sale-leaseback, joint-venture, mortgage and mezzanine financing of need-driven and discretionary senior housing and medical investments. NHI’s portfolio consists of independent, assisted and memory care communities, entrance-fee retirement communities, skilled nursing facilities, medical office buildings and specialty hospitals.