NHI Acquires Two CCRCs in Connecticut for $56.3M

by Jeff Shaw

BRIDGEPORT and SOUTHBURY, Conn. — National Health Investors Inc. (NYSE: NHI) has acquired two entrance-fee continuing care retirement communities (CCRCs) totaling 460 units in Bridgeport and Southbury for $56.3 million. The two towns are located approximately 25 miles apart in the southwest portion of Connecticut.

NHI, a publicly traded REIT based in Tennessee, used funds managed by affiliates of East Lake Capital Management, a Dallas-based investment firm, for the purchase. Arizona-based Watermark Retirement Communities will continue to operate the two CCRCs after the transaction.

Although the specific facility names were not disclosed, the only Watermark-operated communities in Connecticut are The Watermark at 3030 Park in Bridgeport and The Watermark at East Hill in Southbury.

The Watermark lease has a term of 15 years, with an rate to of 7 percent with annual escalators of 3.5 percent in years two through four, and 3 percent annually thereafter.

NHI has committed up to an additional $10 million for capital improvements and potential expansion over the next two years. 

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