Mainstreet to acquire $425 million portfolio, change name to Invesque

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Scott White
Scott White

Mainstreet Health Investments will acquire Care Investment Trust, which owns 42 U.S. seniors housing and care properties, for $425 million, the company announced Friday.

The healthcare real estate company also said it will change its name to Invesque, because the name is “unique and recognizable.”

“Management believes that the rebranding and related name change will eliminate any possible confusion around the use of the Mainstreet name and other entities that use a similar name,” the company said in a press release. The name change is expected to be effective Jan. 3, when a special meeting of shareholders is scheduled, although rebranding already has begun on the company website.

Care Investment Trust currently is owned by Tiptree and subsidiaries, Mainstreet said. The acquisition “significantly improves diversification” and “increases exposure to [the] private-pay sector” for Mainstreet, the company said.

“We are excited to announce the acquisition of CareIT and deliver on our strategic plan to grow our platform, diversify our portfolio and provide significant value for our shareholders,” Mainstreet CEO Scott White said in a statement. “We believe this transaction and the addition of Tiptree as another cornerstone investor will bolster our position in the market and position Mainstreet for the next phase of its growth.”

The CareIT seniors housing portfolio totals 3,718 suites/beds in 35 independent living/assisted living/memory care communities and seven skilled nursing facilities in 11 southern and eastern states. The properties will bring Mainstreet to eight new states as well as increase its presence in three states in which it currently operates.

Twenty-four of the properties are leased to operators under long-term triple-net leases, and 18 are in joint ventures with operators in which Mainstreet will own the majority of the real estate and the operations.

Tenant operators in the portfolio, according to an investor presentation, include Calamar, Greenfield Senior Living, Heritage Senior Living, Inspirit Senior Living, Phoenix Senior Living, Premier Senior Living, Royal Senior Care, and Traditions.

The transaction is expected to be completed during the first quarter of 2018. Mainstreet then will have 80 properties with 8,536 suites/beds across the United States and Canada. The company said its pro forma asset value is expected to increase to $1.2 billion.

Upon closing, Tiptree will become Mainstreet's largest shareholder, with an ownership interest of approximately 34%.

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