Summit Healthcare Acquires Interest in 2 West Coast Facilities
- Nov 11, 2016
Lake Forest, Calif.—Summit Healthcare REIT Inc. announced the acquisition of a 20 percent interest in a 78-bed assisted living and memory care facility located in Citrus Heights, Calif., and a 20 percent interest in a 48-bed memory care facility located in Corvallis, Ore., in late October. The total purchase price for the two facilities was approximately $23 million and financing was arranged through Capital One – Health Financial Solutions LLC.
“This acquisition represents our commitment to continue investing in quality healthcare facilities to meet the demands of the nation’s aging population, and to expand the REIT’s portfolio for the benefit of our shareholders, (…) It also demonstrates the commitment of Summit’s strategy,” Kent Eikanas, president & COO of Summit Healthcare, said in a statement.
The two facilities have been triple-net leased pursuant to a 10-year term to an affiliate of Compass Senior Living LLC, which is headquartered in Eugene, Ore. The principals at Compass have more than 30 years of combined experience in senior housing. Compass leases five other properties in the REIT’s portfolio, while Summit serves as the manager of the entity that holds title to each facility.
Image courtesy of Summit Healthcare