Triple-net health care property owner Care Capital Residence, Inc. (NYSE: CCP) has accepted obtain 6 behavioral health healthcare facilities in California, Arizona and Illinois from affiliates of Signature Health care Solutions, LLC in a $400 million sale-leaseback deal.
The 6 homes, which all have actually been either just recently broadened or under development to expand patient capability, consist of an overall of 712 beds, primarily providing acute inpatient and outpatient psychiatric care, addiction services, geriatric psychiatric care and child and teen psychiatric care.
CCP has actually accepted money approximately $50 million for expansion and enhancements in the portfolio owned by Signature, formerly called Aurora Behavioral Health, one of the nation’s biggest independently owned behavioral healthcare service providers. The transaction, moneyed with cash, disposition proceeds and loanings under the REIT’s line of credit, is expected to close throughout the current quarter.
At closing, Capital Care will rent the homes to affiliates of Signature on a 10-year triple-net basis, with five renewals of 5 years each. CCP expects to money around $380 countless the offer at closing and will have an alternative start in the 4th quarter of 2018 to buy one extra medical facility for a quantity that is anticipated to be about $20 million. CCP will also have a right of very first deal on future residential or commercial property financial investments with Signature, which becomes CCP’s biggest occupant.
Characteristic in the transaction include Aurora Charter Oak Healthcare facility, Covina, CA; Aurora Vista del Mar Hospital, Ventura, CA; Aurora San Diego Medical facility, San Diego; Aurora Arizona West, Glendale, AZ; Aurora Arizona East, Tempe, AZ; and Aurora Chicago Lakeshore Healthcare facility, Chicago.
Capital Care CEO Raymond J. Lewis stated in a release that the Signature deal will allow the REIT to recycle capital from personalities and diversify into a brand-new industry sector “with a tactical operator, favorable investment attributes and strong capital.”
“Signature is devoted to the behavioral health area and will continue to purchase growing our platform through our advancement pipeline and by broadening existing facilities in underserved markets,” said Signature CEO Quickly K. Kim.
The skilled-nursing facility sector is still dealing with basic obstacles that will continue to pressure operating earnings and CCP’s tenant ratios, said Peter L. Martin, analyst with JMP Securities.
“We like the behavioral health sector, however there is a remarkable quantity of capital chasing deals given headwinds in other property classes,” Martin stated.
Signature has actually been advised in this transaction by Goldman, Sachs & & Co.