NEWTON, MASS. — Newton-based REIT Senior Housing Properties Trust (NYSE: SNH) has entered into an agreement to acquire a senior housing portfolio for $304 million. The portfolio comprises 20 communities located in the South.
The portfolio includes seven communities located in North Carolina, five in South Carolina, four in Florida, two in Virginia and two in Georgia. The communities contain a total of 2,111 units, which include 939 assisted living suites, 814 independent living apartments, 311 Alzheimer's care suites and 47 skilled nursing beds.
SNH will lease 15 of the properties to one of its subsidiaries. Five Star Quality Care, a former SNH subsidiary in which SNH maintains a 9 percent stake, will manage the communities under a long-term agreement. The 15 communities currently have an average occupancy rate of 85 percent. The remaining five communities will also be leased to Five Star and will be added to one or more of the combination leases currently in effect between the management firm and SNH. The five communities have an average occupancy rate of 97 percent.
SNH will fund the acquisition, which is expected to close in the second quarter, with a combination of $79 million in mortgage debt assumption, cash on hand and drawings under its $550 million revolving credit facility. The seller's name was not released.
As of the end of 2010, SNH maintained a portfolio of 320 healthcare properties valued at $3.76 billion. Its holdings include 131 assisted living properties, 82 medical office buildings, 52 nursing homes, 43 independent living senior properties, 10 wellness centers and two rehabilitation hospitals.
— Coleman Wood