National Health Investors, Inc. (NYSE:NHI) announced today it has signed a definitive purchase agreement to acquire 25 independent living facilities from certain subsidiaries of Holiday Acquisition Holdings LLC (“Holiday”), an affiliate of Holiday Retirement, for a total purchase price of $491 million. The acquisition is expected to close by December 31, 2013. Wells Fargo Securities, LLC served as financial advisor to NHI on this transaction.
Following the closing of the acquisition, the 25 independent living facilities will continue to be operated by affiliates of Holiday Retirement pursuant to a 17-year master lease signed by an affiliate of Holiday. The lease equates to an initial cash yield of 6.5% on the purchase price with annual escalators of 4.5% in years two through four and annual escalators thereafter at 3.5%, or a maximum of 3.75% if CPI is higher during the preceding year.
Justin Hutchens, NHI’s CEO and President stated, “This investment is in line with our stated goals of partnering with strong operators, diversifying our portfolio, and financing growth in a conservative fashion. Holiday, a portfolio company of Fortress Investment Group, is an industry leading operator of independent living communities.”
- The 25 facilities total 2,841 units, have a median age of 16 years and have an average occupancy rate for the nine months ended September 30, 2013 of 89%
- Locations: Arkansas, California, Georgia, Idaho, Indiana, Louisiana, New Jersey, Ohio, Oklahoma, Oregon, South Carolina and Washington
|2||Butterfield Place||117||Fort Smith||AR|
|13||Chateau De Boise||97||Boise||ID|
|14||Arbor Glen||120||Fort Wayne||IN|
|18||Silver Arrow Estates||126||Broken Arrow||OK|
|19||Astor House at Springbrook Oak||121||Newberg||OR|
|20||Eagle Crest||120||Myrtle Beach||SC|
|24||Kamlu Retirement Inn - Vancouver||83||Vancouver||WA|