Care Capital in $450M Hospital SLB

Chicago Lakeshore Hospital, one of the properties in the portfolio which CCP is acquiring.

CHICAGO—Care Capital Properties Inc., which focuses on the post-acute sector, said Monday afternoon it had agreed to to acquire six behavioral health hospitals in a sale-leaseback transaction with affiliates of Signature Healthcare Services. CCP will pay $400 million for the properties, located in California, Arizona and Illinois, and will also fund up to $50 million in capital expenditures to finance expansion and improvements in the portfolio.

CCP will lease the properties to affiliates of Signature on a 10-year triple-net basis, with five renewals of five years each. The initial GAAP yield on the transaction is expected to be approximately 8.7%, and the investment was underwritten at 1.5x EBITDAR coverage on cash rent.