PENNSYLVANIA, MARYLAND and INDIANA — National Health Investors Inc. (NYSE: NHI) has entered into a joint venture with affiliates of its current tenant, Discovery Senior Living, in order to purchase six seniors housing communities.
Located throughout Pennsylvania, Maryland and Indiana, the portfolio totals 145 independent units, 356 assisted living units and 95 memory care units. The joint venture purchased the communities from an undisclosed seller for $128.4 million, including up to $1.5 million in closing costs and expenses.
NHI, the managing member, will own 97.5 percent of the joint venture equity and Discovery will own the remaining 2.5 percent.
Affiliates of Discovery will lease the communities on a 10-year lease with a 6.5 percent initial annual cash yield with a CPI-based escalator with a 2 percent floor and 3 percent cap beginning in year two. There are two five-year extension options.
NHI has committed to a senior mortgage loan of $6 million at 7 percent annual interest extended to affiliates of Discovery for an additional property in Indiana, for which the joint venture will have the option to purchase at stabilization. The facility features 52 assisted living units and 22 memory care units.
The specific names and locations of the communities were not disclosed.
Developer, owner and operator Discovery Senior Living, based out of Bonita Springs, Florida, was formed in 1991. NHI is a publicly traded healthcare REIT based in Murfreesboro, Tennessee.