National Health Investors has agreed to purchase and leaseback a senior living campus in Massachusetts for a total initial investment of $50.3 million. The lease has a 10-year maturity with three five-year renewal options and an initial annual lease rate of 7.5% plus annual fixed escalators.
NHI has committed up to $1.9 million for agreed-upon capital improvements to the campus over the next two years, which will be added to the lease base. The campus, Wingate at Silver Lake, is located south of Boston in Kingston and consists of 3 separate buildings with 34 independent living units, 69 assisted living units and 164 skilled nursing beds.
The operator, an affiliate of Wingate Healthcare, is a family owned business that has been in operation for over 25 years and currently operates 37 communities located predominately in the Northeast. The acquisition by NHI was funded by a draw on its revolving credit facility.
NHI President and CEO Eric Mendelsohn stated, “We are excited to begin a new relationship with a very experienced operator in Wingate Healthcare. We look forward to expanding our business with them as they continue to grow.”
Incorporated in 1991, National Health Investors, Inc. is a real estate investment trust specializing in sale-leaseback, joint-venture, mortgage and mezzanine financing of need-driven and discretionary senior housing and medical investments. NHI’s portfolio consists of independent, assisted and memory care communities, entrance-fee retirement communities, skilled nursing facilities, medical office buildings and specialty hospitals.