CARMEL, Ind. — Mainstreet Health Investments Inc. (TSXV: HLP.U) has completed its public offering of 9.5 million shares of stock, generating $95 million in gross proceeds. The company, formerly known as Kingsway Arms Retirement Residences, changed names when Carmel-based skilled nursing developer Mainstreet purchased the company in April.
The majority of proceeds from the stock offering will be used to acquire 13 seniors housing communities in the United States, including:
• seven properties (five assisted living and two skilled nursing) located in the Scranton, Pa., metro area. The properties are leased to a single operator under a triple-net master lease.
• two Mainstreet-developed post-acute care properties located in Mooresville and Chesterton, Ind. Each property is leased to a third-party operator under a triple-net lease.
• a post-acute care property in Topeka, Kan., currently under development by Mainstreet. The property is leased to an operator under a triple-net lease.
• Three properties (two independent/assisted living and one memory care) located in the Syracuse, N.Y., metro area. The properties will be leased to a single operator under three separate triple-net leases.
None of the specific property names were disclosed.
Any remaining net proceeds will be used to repay financing on existing properties, lend mezzanine financing and capital improvement projects, as well as providing working capital.