MURFREESBORO, Tenn.--(BUSINESS WIRE)--
National Health Investors (NYSE: NHI) announced today it has agreed to
lend up to $154.5 million to recapitalize and finance the expansion of
Timber Ridge at Talus, a continuing care retirement community in
Issaquah, Washington. It is anticipated the financing will close by
November 30, 2014.
Serving the greater Seattle area, Timber Ridge at Talus is currently 95%
occupied and the new expansion is 75% presold. The existing campus was
built in 2008 and has 184 independent living apartments and 36
transitional care beds. Expansion construction is expected to begin upon
closing and to add 145 independent living apartments, 26 assisted
living/memory care apartments and 9 transitional care beds in addition
to a swimming pool, dining room, fitness center and other amenities. For
more information about the community, visit: http://www.timberridgelcs.com/.
“This Class A community is managed by Life Care Services, a Life Care
Companies subsidiary which is one of the most respected, experienced and
largest operators of continuing care retirement communities. NHI is
thrilled with the opportunity to make this high quality investment which
is representative of our desire to partner with best-in-class
operators,” said Justin Hutchens, NHI’s CEO and President.
The financing is expected to include a $60 million senior loan and a
$94.5 million construction loan with proceeds from the entrance fees of
the new expansion to be applied to the construction loan balance. The
average entrance fee per unit is projected to be $700,000.
The borrower will be a joint venture between Westminster Capital and
LCS. The loan will be divided up into two notes under one master credit
agreement. The senior loan (Note A) is expected to have a 10-year
maturity and 6.75% interest rate that escalates 10 basis points per year
after the third year of the loan. The construction loan (Note B) is
expected to have a 5-year maturity and an 8% interest rate. NHI would
have the option to purchase the community upon the achievement of
specific hurdles.
NHI will fund an initial amount on Note A of $30 million at closing.
This amount will be funded from borrowings on NHI’s revolving credit
facility. The transaction is expected to close by November 30, 2014.
About NHI
National Health Investors, Inc. (NYSE: NHI) is a real estate investment
trust (REIT) specializing in financing healthcare real estate by
sale-leaseback, joint-venture, mortgages and mezzanine financing. NHI’s
investments include senior housing (assisted living, memory care,
independent living and senior living campuses), skilled nursing, medical
office buildings and specialty hospitals. NHI was incorporated and
publicly listed in 1991. For more information, visit www.nhireit.com.
About LCS
Based in Des Moines, Iowa, and established in 1971, LCS is a leading
provider of high-quality senior lifestyle products and services. The LCS
Family of Companies provide development, management, marketing and
sales, and strategic planning for continuing care retirement communities
(CCRCs), stand-alone assisted living, memory care, and rental
communities nationwide. The company also provides in-home care,
insurance, and national purchasing consulting services. The companies of
LCS serve thousands of seniors across the nation. LCS is an equal
opportunity employer hiring skilled and professional employees to better
serve the customer. For more information, visit LCSnet.com.
About Westminster Capital
Westminster Capital is a deeply experienced real estate investment
management firm on behalf of private wealth capital. Founded in 1988,
the firm is located in Lake Forest, Illinois. Private client work
includes investment partnerships and separate accounts deploying
approximately $700 million of investor capital. Westminster Capital
maintains substantial commercial property investments throughout the
United States. For more information visit, www.WestminsterCapitalLLC.com.
National Health Investors, Inc.
Roger R. Hopkins, 615-890-9100
Chief
Accounting Officer
Source: National Health Investors, Inc.