MedEquities Realty Trust Signs Agreement To Re-Tenant Texas Skilled Nursing Portfolio
NASHVILLE, TN–MedEquities Realty Trust, Inc. (NYSE: MRT) announced that it has signed a new, 15-year triple net lease with Creative Solutions in Healthcare (“Creative Solutions”), a regional skilled nursing and assisted living facility operator based in Fort Worth, Texas, for all 10 of the Company’s locations currently leased to affiliates of OnPointe (the “Texas Ten Portfolio”).
Creative Solutions will begin operating the facilities upon receipt of all outstanding regulatory approvals, which is expected to be on or about January 1, 2019, at which time the new lease will commence. Initial annual base rent under the lease will be $7,700,000 with annual lease escalators of 2% and two, five-year tenant renewal options. The lease is guaranteed by Creative Solutions’ management company along with personal guarantees from its two co-founders.
Founded in 2000, Creative Solutions has a proven track record in the long-term care industry and currently operates 55 skilled nursing facilities and seven assisted living facilities, all of which are located in the State of Texas.
“We are pleased to announce this agreement to re-tenant our Texas Ten Portfolio with a proven operator like Creative Solutions in Healthcare,” said John McRoberts, chairman and CEO of MedEquities Realty Trust. “We worked closely with a number of interested operators and narrowed our focus to Creative based on their scale and experience in Texas, strong operating history, solid financial and operating metrics and a reputation for quality.”
MedEquities Realty Trust is a self-managed and self-administered real estate investment trust that invests in a diversified mix of healthcare properties and healthcare-related real estate debt investments.