National Health Investors has agreed to provide up to $180 million to LCS-Westminster Partnership IV LLP, a joint venture between Westminster Capital and LCS. The capital will be used to recapitalize and finance the expansion of Sagewood, a 567-unit continuing care retirement community in Phoenix, Arizona.
MURFREESBORO, Tenn.–(BUSINESS WIRE)–National Health Investors (NYSE: NHI) announced today it has agreed to lend up to $180 million to recapitalize and finance the expansion of Sagewood, a 567-unit Continuing Care Retirement Community (“CCRC”) in Phoenix, Arizona. At closing, NHI funded $86.8 million of this commitment. The Class A CCRC currently consists of 316 independent living units, 44 assisted living units, 28 memory care units and 78 skilled nursing beds, and the project will fund the completion of a 101-unit independent living expansion. Serving the greater Phoenix/Scottsdale area, the existing independent units have approached 100% occupancy in 2018 and the Phase II expansion independent living units are 96% presold.
The borrower is LCS-Westminster Partnership IV, LLP, a joint venture between Westminster Capital and LCS. The financing includes a $118.8 million senior loan and a $61.2 million construction loan with proceeds from the entrance fees of the new expansion to be applied to the construction loan balance. The average entrance fee per unit is projected to be $700,000. The senior loan (Note A) has a 10-year maturity and 7.25% interest rate that escalates 10 basis points per year after the third year of the loan. The construction loan (Note B) has a 5-year maturity and an 8.5% interest rate. The notes were funded from borrowings on NHI’s revolving credit facility.
Based in Des Moines, Iowa, and established in 1971, LCS is a leading provider of high-quality senior lifestyle products and services. The LCS Family of Companies focus on development, operations management, marketing and sales management, and strategic planning for Life Plan Communities, formerly referred to as Continuing Care Retirement Communities (CCRC), and rental independent living, assisted living, and memory care communities nationwide. The company also provides a full-service real estate private equity enterprise, insurance, national purchasing consulting services and in-home care. The companies of LCS serve thousands of seniors across the nation. For more information, visit www.LCSnet.com.
About Westminster Capital
Westminster Capital manages real estate investment strategies on behalf of private wealth capital, including sponsorship of closed-end investment funds and separate account portfolios totaling $860 million of investor capital. Westminster Capital makes commercial property investments throughout the United States across Industrial/Distribution, Apartments, Medical Office and Senior Living properties offering Value-Add to Opportunistic risk-reward returns. Founded in 1988, the firm is headquartered in Lake Forest, Illinois. www.westminstercapitalllc.com
Incorporated in 1991, National Health Investors, Inc. (NYSE: NHI) is a real estate investment trust specializing in sale-leaseback, joint-venture, mortgage and mezzanine financing of need-driven and discretionary senior housing and medical investments. NHI’s portfolio consists of independent, assisted and memory care communities, entrance-fee retirement communities, skilled nursing facilities, medical office buildings and specialty hospitals. For more information, visit www.nhireit.com.