Murfreesboro, TN-based real estate investment trust National Health Investors has completed the restructuring of its lease with Holiday Retirement with the $38 million purchase of a Florida senior living community, the REIT announced Monday.

NHI said it bought the Isles of Vero Beach, a Vero Beach, FL, community with 157 independent living units and 75 assisted living units, and will lease it back to an affiliate of Holiday for $2.6 million annually. The community will be added to the amended master lease with Holiday announced on Nov. 6, the REIT said.

“We are very pleased to finalize the lease amendment with Holiday, together with the purchase of a very successful property in Vero Beach,” NHI President and CEO Eric Mendelsohn said in a statement. “Holiday is a valued partner and we look forward to helping them grow.”

The annual lease escalator beginning Nov. 1, 2020, is variable between 2% and 3% of current rent based on annual revenue growth in the Holiday portfolio, which has 26 senior living communities.

Holiday paid NHI $17.1 million and relinquished $10.6 million in a cash security deposit as a result of the purchase and in consideration of the terms of the amended master lease. Beginning Feb. 1, cash rent for the portfolio is $34.1 million annually, NHI said.