National Health Investors Inc.
), a Murfreesboro, TN-based real estate investment trust (REIT),
recently announced a deal to acquire a 56-unit assisted living
community in Sacramento, CA, for $11.5 million. National Health
Investors' revolving credit facility was utilized to fund this
Built in 1999, this living community property offers memory care
services in Sacramento. Currently, this property is 94% occupied
and generates monthly revenue of $7,300 per occupied unit.
A subsidiary of Chancellor Health Care (CHC), which has experience
in managing long-term senior care communities, will lease and
operate the property for an initial time period of 15 years, with
options for two renewals of 10 years each. The starting lease rate
has been set at 8% plus fixed annual escalators.
National Health Investors is a REIT, engaged in income generating
health care properties, mainly in the long-term care industry. It
is involved in healthcare real estate financing through joint
ventures, leaseback, mortgage and mezzanine financing. It invests
in long-term healthcare facilities, medical office buildings,
retirement centers, acute care hospitals and assisted living
This latest acquisition is a smart addition to National Health
Investors' portfolio and its immediate leasing should translate
into cash flow.
National Health Investors currently holds a Zacks Rank #2 (Buy).
Some other equity REITs worth considering include
The GEO Group, Inc.
Parkway Properties Inc.
Aviv REIT, Inc.
). All of these stocks sport a Zacks Rank #1 (Strong Buy).
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NATL HEALTH INV (NHI): Free Stock Analysis
AVIV REIT INC (AVIV): Free Stock Analysis
PARKWAY PPTY (PKY): Free Stock Analysis Report
GEO GRP INC/THE (GEO): Free Stock Analysis
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