National Health Investors, Inc. (NYSE: NHI) announced today a sale-leaseback arrangement with Vancouver, WA based Prestige Senior Living (“Prestige”). The $42 million acquisition includes one Assisted Living Community in Idaho (105 Assisted Living and Memory Care units) and three Skilled Nursing Facilities in Oregon (196 beds).
Prestige will lease all four facilities for a 15-year term with renewal options at an initial lease rate of 8.4% plus fixed annual escalators. The purchase was funded from borrowings on NHI’s revolving credit facility.
Justin Hutchens, NHI’s CEO and President said, “I’m excited for NHI to start this relationship with Prestige Senior Living given their attractive track record operating for over twenty-five years.”
The $42 million purchase price includes $2 million for capital improvement projects at two of the Oregon facilities that are expected to be completed by June 30, 2015. Additionally, NHI has committed to funding an earn out up to $6.4 million upon receipt of Prestige’s performance results that meet certain financial metrics for the periods ending December 31, 2014, June 30, 2015 and December 31, 2015, increasing total potential investment to $48.4 million.About Prestige Senior Living, L.L.C. Prestige Senior Living and Prestige Care operate a family of more than 80 senior communities throughout the Western United States. Prestige Care provides a comprehensive senior service experience, offering assisted living, memory care, skilled nursing and rehabilitation. For more information on Prestige, visit its website at www.prestigecare.com. About NHI NATIONAL HEALTH INVESTORS, INC (NYSE: NHI), a Maryland corporation incorporated and publicly listed in 1991, is a healthcare real estate investment trust (REIT) specializing in financing healthcare real estate by sale-leaseback transactions, RIDEA transactions and by mortgage loans. NHI’s investments include senior housing (assisted living, memory care, independent living and senior living campuses), skilled nursing, medical office buildings and specialty hospitals. For more information, visit www.nhireit.com.