Further expanding its relationship with Bickford Senior Living, National Health Investors exercised its purchase option to acquire five assisted living/memory care communities from Bickford for $87.5 million, or $315,884 per unit, with an approximate cap rate of 8.3%. Although the properties are not included in the existing joint venture between the two entities, the companies have been closely linked since 2012 when they announced a 10-property partnership, then followed that with a 36-property development pipeline, plus various other acquisitions. This current deal involves five well performing properties in Iowa (2), Missouri, Illinois and Nebraska with an average combined occupancy of 92% and average age of 12 years. NHI will lease the portfolio to Bickford with an EBITDARM coverage of 1.35x, based on an initial annual lease rate of 7.25%. The lease also has an initial term of 15 years plus two five-year renewal options and annual escalators of 3%. NHI has already committed $2.4 million for capital expenditures and expansion projects, the funding of which will be added to the lease base. To fund the acquisition, NHI used available cash and borrowings on its revolving credit facility.