National Health Investors has acquired senior living communities in Oregon and Michigan through two separate transactions for a combined purchase price of $12.7 million.
“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, NHI’s president and CEO, said in a statement. “These acquisitions are representative of our desire to continue our practice of partnering with strong regional operators.”
Golden Age Senior Living in Portland, OR, was purchased for $6.7 million. The property was significantly renovated in 2010 and expanded in 2013, according to NHI, and the 40-bed memory care community is 88% occupied. The community will be leased to existing partner Chancellor Health Care for 15 years, with renewal options at an initial lease rate of 7.75% plus annual escalators. The GAAP lease yield is 8.9%.
The Brook of Roscommon, Roscommon, MI, was purchased for $6 million. Built in 2002, the 42-unit independent and assisted living community is mostly private pay and is 95% occupied, according to NHI. The community will be leased to The Brook Retirement Communities for 10 years, with renewal options at an initial lease rate of 7.5% plus annual escalators. The GAAP lease yield is 8.6%.
The purchases were funded with cash on hand and borrowings from NHI’s revolving credit facility.