NHI Acquires 48-Unit Community in Tennessee, Expands Relationship with Operator Navion

by Jeff Shaw

MANCHESTER, Tenn. — National Health Investors Inc. (NYSE: NHI) has expanded its relationship with Navion Senior Solutions through the acquisition of an assisted living and memory care community, funding of an expansion at an existing community, and funding of a corporate loan for future development costs. These investments total approximately $13.2 million.

NHI acquired a 48-unit assisted living and memory care community in Manchester for $6.6 million at an initial yield of 7.5 percent. The lease has 2.5 percent annual escalators and was added to the existing master lease with Navion, which has a 12-year maturity and two 5-year extension options.

Additionally, NHI provided approximately $3 million to Navion for a 10-unit expansion at Carolina Reserve of Durham, a senior housing community that NHI purchased in December 2017. The expansion financing is added to the lease basis and has an incremental lease rate of 8.0 percent.

Lastly, NHI provided a 10-year corporate loan to Navion for $3.6 million with an interest rate of 8 percent. In connection with the loan, NHI has a right of first refusal to provide permanent development financing for a future project.

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