HUNT VALLEY, Md. — Omega Healthcare Investors (NYSE: OHI) has acquired 16 skilled nursing facilities in Indiana for $200 million through two separate transactions. In addition, the company announced that two of its skilled nursing facilities were evacuated during Hurricane Harvey last week.
Omega owns 32 skilled nursing facilities that were impacted by Hurricane Harvey. Only two, both located along the Sabine River that separates Texas from Louisiana, were closed. The names and specific locations of those facilities were not disclosed, and no further information on the extent of the damage was released.
For the acquisitions, Omega acquired 15 facilities totaling 2,074 beds from two unrelated third parties and leased them to CommuniCare Health Services. Simultaneously, Omega received a $9.4 million loan to purchase the leasehold interest in a 135-bed skilled nursing facility, also leasing the property to CommuniCare.
CommuniCare will replace Kindred Healthcare as the operator of all 16 facilities. The company plans to keep the full staff in place. The acquired properties include:
- Allison Pointe Healthcare Center, Indianapolis
Bridgewater Healthcare Center, Carmel
Great Lakes Healthcare Center (formerly Kindred Dyer Healthcare), Dyer
Eagle Creek Healthcare Center, Indianapolis
Greenfield Healthcare Center, Greenfield
Greenwood Healthcare Center, Greenwood
Harrison Healthcare Center, Corydon
Indian Creek Healthcare Center, Corydon
Kokomo Healthcare Center, Kokomo
Rolling Hills Healthcare Center, New Albany
Sellersburg Healthcare Center, Sellersburg
Southpointe Healthcare Center, Indianapolis
Southwood Healthcare Center, Terre Haute
Valley View Healthcare Center, Elkhart
Wedgewood Healthcare Center, Clarksville
Wildwood Healthcare Center, Indianapolis
The properties were added to the operator’s master lease with Omega, which includes an initial cash yield of 9.5 percent with 2.5 percent annual escalators.
Omega is a publicly traded REIT focused on the long-term care industry, with 1,000 properties in 42 states and the United Kingdom. The company has partnerships with 77 different operators.