Health Care REIT, Inc. (NYSE:HCN) announced Tuesday it expects to close a total of nearly $200 million in senior housing investments by the close of the second quarter.
The senior housing acquisitions are part of Health Care REIT’s anticipated second quarter 2014 acquisition pipeline of about $414 million total. That pipeline includes about $162 million of medical office buildings, about $30 million of post-acute care properties, and a roughly $23 million Canadian seniors housing operating property, where Health Care REIT will be the majority owner.
Ninety-two percent of the potential acquisitions are expected to involve Health Care REIT’s existing portfolio partners. The aggregate acquisition amount includes approximately $12 million of debt that Health Care REIT expects to assume at an average interest rate of 4.2%.
The anticipated acquisitions come on the heels of Health Care REIT’s near-$400 million joint venture investment with California senior housing operator Senior Resource Group, announced earlier this month.
The 10-property portfolio is concentrated in Southern California but also includes properties in Portland, Phoenix and Tucson. The majority of the units are independent living, but many properties also offer assisted living and/or memory care services.
“Our platform is firing on all cylinders, delivering consistent, predictable internal and external growth,” said Health Care REIT CEO Thomas DeRosa in an earnings call earlier this month.
Written by Cassandra Dowell