Following a late-February announcement that they would work out a settlement to their rent dispute, National Health Investors and Welltower announced that they have entered into a memorandum of understanding on the matter. The MOU stipulates that:
- NHI and Welltower wish to transition the 16 legacy Holiday Retirement properties to new tenants and that Welltower will use commercially reasonable efforts to complete this by April 1, 2022.
- NHI desires to sell one legacy Holiday property and that Welltower will use commercially reasonable efforts to facilitate the sale’s closing.
- Welltower will pay NHI approximately $6.9 million, to be held in escrow until the execution of the final settlement agreement and transition of the properties.
- NHI is entitled to the entirety of an approximately $8.8 million security deposit which can be liquidated with NHI’s sole discretion.
- Following the transition and execution of the final settlement, NHI will file within three days a stipulation of dismissal with prejudice and a form of order closing the litigation.
Disputes like this have been thankfully rare in the senior care industry, and both companies will benefit from the resolution. Hopefully next month will be the last we hear of it.
