Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEWPORT BEACH, CA-Health Care Property Investors has closed on the acquisitions of four continuing care retirement communities from American Retirement Corp. for a total purchase price of $163.5 million and has closed a $7 million secured loan to American Retirement.

Before the closings, the locally based health care real estate investment trust owned a 9.8% interest in the entities that owned the four facilities, two of which are located in Texas, with the other two in Arizona and Colorado.

The properties were built between 1987 and 1989, contain a total of 1,170 units, with an occupancy level of 94% at the time of the closings. Three of the facilities are leased to American Retirement and the fourth, the Colorado facility, is leased to a third party that has contracted with American to manage the facility. The $7 million loan, which is secured by 27 acres of land adjacent to the two facilities in Texas, carries an interest rate of LIBOR plus 3%, and has a term of three years.

At the conclusion of the transaction, Health Care Property Investors will have increased its total investment with American Retirement Corp. to $300 million, which includes $209 million in owned and leased properties.

CEO James F. Flaherty III of Health Care Property Investors says that converting a portion of its mezzanine loan into real estate ownership has enabled the REIT to “own facilities that are among the finest within the senior housing industry.”Health Care Property Investors invests directly or through joint ventures in health care facilities. The company’s investment portfolio, as of June 30, consisted of 448 facilities in 44 states. The investments include 31 hospitals, 175 long-term care facilities, 126 retirement and assisted living facilities, 85 medical office buildings and 31 other health care facilities.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.