National Health Investors, Inc. (NYSE:NHI) announced that it has entered into an agreement with Bickford Senior Living and its affiliates to construct up to eight assisted living and memory care communities in the next three years that will target a private-pay audience.
“This development agreement helps us achieve our ongoing strategic thrust of increasing our portfolio revenue from senior housing assets that are not dependent on government payors,” said Justin Hutchens, NHI President and CEO. “[Bickford has] a proven track record in identifying good markets and constructing assisted living and memory care facilities that meet the demand for need-based, private pay residents.”
Construction on the first facility is expected to begin in the second half of 2012, with NHI and Bickford planning on initiating up to three development projects per year. Each facility will have approximately 60 beds and cost a total of about $9 million or less.
Bickford will lease the facilities with a 15-year term at an initial annual lease rate of 9% plus annual fixed escalators. NHI currently leases eight other assisted living and memory care communities to Bickford, and has agreed to immediately provide a $3 million revolving credit facility to Bickford to fund the market feasibility and pre-construction costs related to the new development projects.
Olathe, Kans.-based Bickford has experience in constructing more than 150 assisted living, memory care, and independent living facilities.
Written by Alyssa Gerace