According to a accompany statement, the master leasebackincludes an 8.7% effective rent yield; up to 2% CPI-based annualrent escalators; and exclusive rights on $150 million of potentialnew investments. In addition, Hearthstone president and CEO TimHekker and partners will acquire 100% ownership of the company thatwill operate the Hearthstone facilities. Hearthstone's principalselling shareholders include Fremont Realty Capital, funds advisedby Apax Partners, LP and Kosberg & Associates.
NHP has also agreed to finance $15 million of Hearthstone'sfuture facility expansions at lease rates current at that time.
"We have continually reiterated our belief in both the short andlong-term growth potential of the senior housing sector," saysDonald D. Bradley, NHP's chief investment officer. "Given thequality of the assets we are acquiring--all of which were built byHearthstone starting in 1996--the strength of the operating team,Hearthstone's financial condition and the structure of thetransaction, this investment represents a significant opportunityfor the company."
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John Salustri
John Salustri has covered the commercial real estate industry for nearly 25 years. He was the founding editor of GlobeSt.com, and is a four-time recipient of the Excellence in Journalism award from the National Association of Real Estate Editors.
