LAKE FOREST, Calif., Nov. 10, 2016 /PRNewswire/ -- Summit Healthcare REIT, Inc. (" Summit" or the "REIT") announced today that it has acquired a twenty percent interest in a 78-bed assisted living and memory care facility located in Citrus Heights, California and a twenty percent interest in a 48-bed memory care facility located in Corvallis, Oregon, on October 31, 2016. The total purchase price for the two facilities was approximately $23 million, and financing was arranged through Capital One - Healthcare Financial Solutions, LLC.
The two facilities have been triple-net leased pursuant to a 10-year term to an affiliate of Compass Senior Living, LLC ("Compass") which is headquartered in Eugene, Oregon. The principals of Compass have over 30 years of combined experience in senior housing. Compass leases five other properties in the REIT's portfolio. Summit serves as the manager of the entity that holds title to each facility. "This acquisition represents our commitment to continue investing in quality healthcare facilities to meet the demands of the nation's aging population, and to expand the REIT's portfolio for the benefit of our shareholders," said Kent Eikanas, President and Chief Operating Officer of Summit Healthcare REIT, Inc. "It also demonstrates the commitment of Summit's strategy."