National Health Investors has added another property to its growing portfolio. Paying $7.6 million, or $149,000 per unit (including $100,000 of closing costs), the REIT acquired a 51-unit assisted living community in Pueblo, Colorado. Built in 1997 with an addition in 2008, the community was 96% occupied at the time of the sale. Cappella Living Solutions, which is owned by the not-for-profit Christian Living Communities and operates a portfolio of 26 communities, will take over the lease, under a 15-year term and an annual lease rate of 7.25%.
The agreement included a CPI-based escalator with a floor of 2% beginning August 2020. NHI funded the deal with proceeds from its revolving credit facility. Brian Clark of Heavenrich & Company represented the seller, a regional owner, in the transaction.