NHI Purchases Vero Beach Senior Living Facility For $38 Million
MURFREESBORO, TN–National Health Investors (NYSE:NHI) announced Feb. 4 the purchase of the Isles of Vero Beach, a senior living community in Florida owned by an affiliate of Holiday Retirement (“Holiday”). The community consists of 157 independent living units and 75 assisted living units.
The community was acquired for $38 million and will be leased back to an affiliate of Holiday for $2.6 million annually and added to the amended master lease with Holiday announced on November 6, 2018. The annual lease escalator beginning November 1, 2020 is variable between 2% and 3% of current rent based on annual revenue growth in the Holiday portfolio consisting of 26 senior living communities.
The purchase by NHI was accomplished as part of the restructuring and extension of the Holiday amended master lease announced on November 6, 2018. As a result of this purchase and in consideration of the terms of the amended master lease, Holiday has made a cash payment to NHI of $17.1 million and relinquished $10.6 million in a cash security deposit. Beginning February 1, 2019, cash rent for the portfolio will be an annual amount of $34.1 million.
NHI President and CEO Eric Mendelsohn stated, “We are very pleased to finalize the lease amendment with Holiday, together with the purchase of a very successful property in Vero Beach. Holiday is a valued partner and we look forward to helping them grow.”