INDIANAPOLIS, March 25, 2013 /PRNewswire/ -- Mainstreet Property Group, one of the country's largest and most innovative developers of seniors housing and care properties, announced today that the board of trustees of its affiliated REIT, HealthLease Properties Real Estate Investment Trust (TSX: HLP.UN), has approved the acquisition of 13 senior housing and care properties located in North Carolina, Pennsylvania and Virginia totaling 978 beds for an aggregate purchase price of approximately $141.7 million.
The acquisition properties consist of four skilled nursing facilities, comprising a total of 355 units, eight combination assisted living/Alzheimer's facilities, comprising 563 units, and one standalone Alzheimer facility, comprising 60 units.
The acquisition is consistent with Mainstreet's and HealthLease's strategy of owning best-in-class facilities, as the acquisition properties are newer-generation facilities with an average age of approximately four years from the year built or substantially renovated.
Zeke Turner, Chairman and CEO of Mainstreet and HealthLease, said, "The acquisition of these newly-built or newly-renovated properties greatly enhances our scale and diversification with respect to health care product mix and geography, in addition to lowering the average age of our portfolio properties to approximately 6 years. It continues our expressed strategy of building a portfolio of high-quality care facilities, leased under triple-net structures, to leading national operators."The Acquisition Properties are triple-net leased to tenants affiliated with leading national operators of assisted living, memory care, and skilled nursing facilities and will be managed by those operators. Six facilities will be managed by Meridian Senior Living. Meridian, headquartered in Hickory, North Carolina, is a national operator of 91 facilities across 12 states. Seven facilities will be managed by Saber Healthcare Group, LLC. Saber, headquartered in Bedford Heights, Ohio, operates 56 facilities across six states. The Acquisition Properties have a weighted average lease term of 10.5 years. Upon completion of the acquisition, HealthLease Properties REIT's portfolio will increase to 28 facilities comprised of 2,909 units geographically diversified across five states and two Canadian provinces. The addition of Meridian and Saber will enhance diversification amongst tenant operators, which will now total 11 operators. In addition, the Acquisition will result in greater diversification of need-driven care services. The REIT's portfolio will consist of 57.8% skilled nursing/long-term care units, 37.6% assisted living/memory care units, and 4.6% independent living units.