National Health Investors’ Latest Purchase Option

Executing on a purchase option, National Health Investors acquired a 32-unit assisted living/memory care community in Durham, North Carolina, for $7.6 million, or $237,500 per unit. The impetus for the deal goes back to February 2017, when NHI purchased two adjacent AL/MC communities in Hendersonville, NC (about 20 miles south of Asheville) and entered into a new operating relationship with Ravn Senior Solutions at the same time.

Ravn, which stepped in to operate the two communities under a new 15-year lease (with an annual lease rate of 7.35% and annual fixed escalators), was founded by a group of industry veterans, including Steve Morton (co-founder of Southern Assisted Living, Inc. and former CEO of Bell Senior Living), Ted Turner (formerly of Five Star Senior Living), Patti Jones and Arick Morton (also formerly of Southern Assisted Living).

At the time of the February acquisition, NHI also entered into a purchase option with Ravn (now, Navion Senior Solutions) for the Durham community, which it had already been operating on behalf of the previous owner since 1994, HHHunt, a regional owner of senior living communities in the Southeast.

Moving forward, NHI will invest up to $650,000 to both renovate the building and add four extra units. The REIT also added the property to its existing 15-year master lease with Navion Senior Solutions and financed the deal using its revolving line of credit.


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