National Health Investors, Inc.(NYSE:NHI) announced new investments totaling $7.2 million that include a purchase/leaseback of a 24-unit assisted living and memory care facility in Minnesota with Suite Living Senior Specialty Services (formerly known as Comforts of Home) for $4.2 million and the origination of a $3.0 million second mortgage secured by interests in three skilled nursing facilities in Texas totaling 311 beds as part of a bridge to HUD financing for the borrower. The investments were funded with borrowings from NHI’s revolving credit facility and bring NHI’s total transaction volume to date in 2010 to $103.9 million.
The Suite Living facility is six years old and leased for a term of 15 years at an initial lease payment of $420,000 plus annual fixed escalators. The purchase/leaseback transaction brings the total recent transactions with Suite Living to $21.4 million, including four assisted and memory care facilities totaling 126 beds and a total initial lease payment of $2,140,000 plus annual fixed escalators. The $3.0 million second mortgage includes a term of five years, a fixed interest rate of fourteen percent and a one percent origination fee.
Justin Hutchens, NHI President and COO, noted, "We are pleased to continue diversifying and expanding our portfolio with this additional transaction with Suite Living and an attractive mortgage investment in Texas. Both investments are backed by strong operators with good locations and were sourced by our in-house team."