Mainstreet Property Group has sold a newly constructed 100-unit senior living community based in Hamilton County, Indiana to HealthLease Properties Real Estate Trust (TMX:HLP.UN) for $17.86 million. The fully occupied facility is leased on a triple-net basis to Life Care Services.
The community, Wellbrooke of Westfield, includes 70 skilled nursing and rehabilitation units and 30 assisted living units. The property will be acquired under the REIT’s pre-existing development agreement, according to Mainstreet, which provides the REIT with the right to acquire any seniors housing and care properties developed by Mainstreet.
The purchase price of $17.86 million is contingent upon closing conditions and will be financed with a combination of assumed debt and exchangeable REIT units.
HealthLease will also acquire certain cash assets for their net present value of $2.47 million, according to the company.
Wellbrooke of Westfield opens this month and is the fourth property developed by Mainstreet for the REIT. Mainstreet previously announced the completion of three development properties in February 2013 that were sold to the REIT in its initial public offering.
Mainstreet has seven additional properties under development, which it will offer to the REIT upon completion.
HealthLease has been active in the senior housing space this year, having recently acquired a $142 million portfolio of properties in March.
Written by Elizabeth Ecker