The company closed the purchase and leaseback of two retirement communities totaling 542 units located in Jacksonville, Fla., and Houston and three assisted living facilities totaling 254 units located in Delray Beach, Fla., Cleveland and San Antonio. The company acquired the facilities from American Retirement Corp. and leased them to affiliates of American Retirement Corp. under a 15-year triple net master lease.
The total purchase price was $73.2 million or $101,500 per unit for the retirement communities and $71,654 per unit for the assisted living facilities. The retirement communities have a current average occupancy of 95%. The assisted living facilities are less than two years old and are currently in the fill-up stage, with a current average occupancy of 60%.
Upon completion of certain refinancing transactions by American Retirement, Health Care Property Investors will purchase a fourth assisted living facility containing 92 units located in Boynton Beach, Fla. The purchase price for this facility will be $6 million, or $65,217 per unit. The average yield of the entire transaction, upon completion, will be 10.73% during the first year.
In another transaction, the company purchased an administrative office building located in Las Vegas, one of the fastest growing cities in the nation. The 204,000 sf class A building was purchased for $45 million. The building was constructed in 1998 and is leased to Sierra Health Services on a triple net basis for approximately 14 more years. The acquisition also includes a 728-stall parking garage and 1.6 acres of vacant land. The first-year yield to the company on this investment will be 10.14%.
Health Care Property Investors, based in Newport Beach, Calif., is a self-administered equity real estate investment trust that invests directly or through joint ventures in health care facilities. The company's investment portfolio, as of March 31, 2002, consisted of 430 facilities in 42 states.
The company's investments include 174 long-term care facilities, 96 congregate care and assisted living facilities, 85 medical office buildings, 37 physician group practice clinics, 21 acute-care hospitals, nine freestanding rehabilitation facilities, six health care laboratory and biotech research facilities, and two continuing care retirement facilities
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