MedEquities Buys IN Skilled Nursing Facilities
- Jul 18, 2017
MedEquities Realty Trust Inc. has executed a definitive agreement to purchase two skilled nursing facilities in Indiana from Magnolia Health Systems for $15 million in cash. The company will lease the facilities to Magnolia, pursuant to a 15-year, triple-net master lease at an initial lease rate of 9 percent, with annual escalators. The transaction is expected to close within 30 days, subject to customary closing conditions.
The two free-standing, single-story skilled nursing facilities include 160 licensed beds. Brookville Healthcare Center is located at 11049 State Road 101 in Brookville, Ind., just off Route 101. The 34,302-square-foot facility is licensed for 100 beds.
Located at 215 W. High St. in Liberty, Ind., Whitewater Commons Senior Living Center is a 19,928-square-foot asset licensed for 60 beds. Property amenities include a fully equipped rehabilitation gym and hair salon. The property has easy access to routes 27 and 44 and Woodruff’s Supermarket.
Experienced regional operators
“This transaction is consistent with our stated objective of aligning MedEquities with solid, experienced regional operators,” said John McRoberts, MedEquities’ CEO & chairman, in prepared remarks.
Founded in 1996 by Stuart Reed, Magnolia operates 27 skilled long-term care facilities in Indiana. Reed is a founding member of Indiana nursing facility trade association Hoosier Owners & Providers for the Elderly (HOPE).
MedEquities continues to grow its skilled nursing portfolio, following its recent acquisition of a 65,000-square-foot property in Tolland, Conn., leased to Prospect ECHN Eldercare Services Inc.
Image courtesy of Brookville Healthcare Center