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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.

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