The 17 SNFs, representing 1,820 available beds, are located in Arkansas (12), Colorado (1), Florida (1), Michigan (2) and Wisconsin (1). The transaction involved two separate master lease agreements covering all 17 SNFs with an initial yield of 9.9%.
Ciena Healthcare Management – On November 14, 2011, the Company entered into a $92.0 million first mortgage loan with affiliates of Ciena Health Care Management Inc. (“Ciena”). The loan encompasses 13 SNFs, totaling 1,421 beds, all located in Michigan. The term of the mortgage is 10 years and bears an initial interest rate of 11%, with fixed escalators in years 4 and 7. The mortgage is cross defaulted with an existing investment with affiliates of Ciena.
Persimmon Ventures, LLC and White Pine Holdings, LLC – During the fourth quarter of 2011, the Company completed $86 million of combined new investments with affiliates of Persimmon Ventures, LLC and White Pine Holdings, LLC (“White Pine”) both new operators to the Company. The investments involved a purchase / lease back transaction and a mortgage transaction. The combined transaction consists of 7 facilities and 938 beds.
Purchase / Lease Back Transaction – The Company purchased four SNFs located in Maryland (3) and West Virginia (1), totaling 586 beds for a total investment of $61 million, consisting of $31 million in cash and the assumption of $30 million, 4.87% (weighted-average) indebtedness guaranteed by HUD maturing between March 2036 and September 2040.Mortgage Transaction – The Company entered into a first mortgage loan with White Pine in the amount of $25 million secured by a lien on three SNFs, totaling 352 beds, all located in Maryland. The overall combined transaction totaled $86 million, consisting of $56 million in cash and $30 million in assumed HUD indebtedness, with a combined initial annual yield of approximately 10%.