National Health Investors, Inc. (NYSE: NHI) announced it has entered into a property-company joint venture with affiliates of its current tenant, Discovery Senior Living (“Discovery”). Six properties, located in Pennsylvania, Maryland and Indiana, will be purchased by the joint venture for $128,350,000, including up to $1,500,000 in estimated closing costs and expenses. The properties consist of 145 independent units, 356 assisted living units and 95 memory care units and will be leased to affiliates of Discovery in a 10-year lease with a 6.5% initial annual cash yield with a CPI-based escalator with a 2% floor and 3% cap beginning in year two. There are two five-year extension options. NHI, the managing member, will own 97.5% of the joint venture equity and Discovery will own 2.5%.
NHI has committed to a senior mortgage loan of $6,000,000 at 7% annual interest extended to affiliates of Discovery for an additional property in Indiana for which the joint venture will have the option to purchase at stabilization. The facility consists of 52 assisted living units and 22 memory care units. The loan is scheduled to be closed by June 30.
Eric Mendelsohn, NHI President and CEO, stated, “NHI has had a long-standing relationship with Discovery, which is a highly-regarded, sophisticated operator of independent, assisted and memory care communities. We are excited to further develop that relationship through a joint venture on these properties that provide an excellent fit into NHI’s portfolio.”
Discovery Senior Living, based out of Bonita Springs, FL, was formed in 1991. With almost three decades of experience, the award-winning management group has been developing, building, marketing, and operating upscale, luxury senior-living communities across the United States. With a flourishing portfolio of more than 9,500 existing home or homes under development, Discovery Senior Living has become a recognized industry leader in creating world-class, resort-style communities. For more information, visit www.discoveryseniorliving.com.
Incorporated in 1991, National Health Investors, Inc. (NYSE: NHI) is a real estate investment trust specializing in sale-leaseback, joint-venture, mortgage and mezzanine financing of need-driven and discretionary senior housing and medical investments. NHI’s portfolio consists of independent, assisted and memory care communities, entrance-fee retirement communities, skilled nursing facilities, medical office buildings and specialty hospitals. For more information, visit www.nhireit.com.