Health Care REIT, Inc. (NYSE:HCN) announced it has substantially completed its $817 million partnership with Merrill Gardens, LLC, which was previously announced in early August 2010. The transaction includes a total of 32 communities with a $628.3 million investment balance which closed effective September 1st, with the remaining 6 communities valued at $188.7 million expected to close by the end of September. The transaction consists of communities located primarily in affluent West coast markets that have high barriers to entry and the portfolio is 99% private pay with a mixture of independent living, assisted living and dementia care with an average occupancy for the portfolio of 92%.
HCN also announced the pricing of an offering of $450 million in aggregate principal amount of 4.70% Senior Notes due September 15, 2017. The notes were priced at 99.710% of their face amount to yield 4.749%. The offering is expected to close on September 10, 2010 and will be used for general corporate purposes, including investing in health care and senior housing properties and repaying borrowings under its unsecured line of credit and other outstanding indebtedness.