In the middle of restructuring and extending its master lease with Holiday Retirement, National Health Investors also was able to acquire a senior living community in Vero Beach, Florida. Consisting of 157 independent living and 75 assisted living units, the community was leased back to Holiday for approximately $2.6 million in rent annually. It falls under the new lease terms, which come with annual lease escalators beginning November 1, 2020 and varying between 2% and 3% depending on the annual revenue growth of the 26-property Holiday portfolio.
As part of the acquisition and lease restructuring, Holiday also paid NHI $17.1 million in cash and relinquished a $10.6 million cash security deposit. As of the deal closing on February, rent for the entire portfolio will be $34.1 million. For the Vero Beach community, NHI paid $38 million, or $163,800 per unit.
