HealthLease Agrees to $142M Seniors Housing Buy

HealthLease Agrees to $142M Seniors Housing Buy

INDIANAPOLIS—HealthLease Properties Real Estate Investment Trust, an affiliate of locally based Mainstreet Property Group, has agreed to purchase 13 seniors housing and care properties in three states for $141.7 million.

The acquisition properties consist of four skilled nursing facilities, comprising a total of 355 units, eight combination assisted living/Alzheimer's facilities, comprising 563 units, and one standalone Alzheimer facility, comprising 60 units. The sites are located in North Carolina, Pennsylvania and Virginia.

Zeke Turner , Chairman and CEO of Mainstreet, says the firm is seeking newer-generation facilities with an average age of approximately four years from the year built or substantially renovated.  "The acquisition…greatly enhances our scale and diversification with respect to health care product mix and geography, in addition to lowering the average age of our portfolio properties to approximately  six years,” he says in a statement. “It continues our expressed strategy of building a portfolio of high-quality care facilities, leased under triple-net structures, to leading national operators."

The sites are triple-net leased to tenants affiliated with national operators of assisted living, memory care, and skilled nursing facilities, with weighted average lease terms of 10.5 years, and will be managed by those operators.  Six facilities will be managed by Hickory, N.C.-based Meridian Senior Living. Seven facilities will be managed by Bedford Heights, Ohio-based Saber Healthcare Group LLC.  Saber, headquartered in Bedford Heights, Ohio, operates 56 facilities across six states. 

Upon completion of the acquisition, HealthLease REIT's portfolio will increase to 28 facilities comprised of 2,909 units diversified across five states and two Canadian provinces. "We are pleased to be able to expand our operating line and add additional flexibility to our balance sheet as a part of this transaction," says Adlai Chester , CFO of Mainstreet . "Doing so allows us to be even more responsive to any acquisition opportunities we see in the marketplace."

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