January 24, 2020, Ben Swett, SeniorCare Investor - Brookdale Senior Living exercised its purchase option on eight assisted living communities that it operated on behalf of the owner, National Health Investors. The transaction was hinted at in NHI’s third-quarter earnings report, which noted the properties as being held for sale.
And Eric Mendelsohn, President and CEO, confirmed in the Q3 earnings call that the purchase price would start at a base of $37 million, with a fair market value component as high as $5 million which NHI and Brookdale would split 50-50. In the end, Brookdale paid $39.26 million, or $116,845 per unit.
The eight communities, which were located in three states and totaled 336 units, contributed 2019 GAAP revenue of $4.31 million and 2019 cash revenue of $4.48 million to NHI.
Brookdale was also involved in the sale of four communities it operated in the Southeast. Located in Naples, St. Petersburg and Clearwater, Florida, and Greenville, South Carolina, the communities offered a combination of independent living, assisted living and memory care services.
Inspirit Senior Living formed a joint venture with Venue Capital LLC, an investment and asset management firm, to acquire the portfolio and will immediately begin renovations.