- Portfolio overlaps with Emeritus’ existing footprint leading to value creation opportunities.
- Health Care REIT expects the transaction will be slightly accretive to earnings in year one.
- The initial term and the renewal term are each 15 years.
- Health Care REIT will receive $54 million of rent in year one on the 38-property portfolio.
- Predictable, attractive growth through annual rent escalators equal to the greater of CPI or 4.00% in year two, and the greater of CPI or 3.25% thereafter.
- Beginning in year three, Health Care REIT will be eligible to receive additional rent in the event that the gross revenue from the portfolio exceeds certain thresholds.
- Rent will reset to fair market value upon renewal, with a floor of the prior year’s rent plus the escalator, and a ceiling equal to 110% of the prior year’s rent.
- Health Care REIT and Merrill Gardens will remain joint venture partners in ten high-quality communities with 1,428 units concentrated in affluent, infill markets including Seattle, San Jose and San Diego. Merrill Gardens will continue to manage these communities, serving as a platform for their development projects, which they will self-manage.
- Health Care REIT will maintain an attractive, modern pipeline of high-end properties through its right of first opportunity on all future Merrill Gardens acquisitions and development projects.
Health Care REIT Enters Into Triple Net Lease With Emeritus Senior Living On Seniors Housing Portfolio
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