National Health Investors Inc has agreed to commit $25.35 million to fund the development of a 144-bed nursing facility in Oak Creek Wisconsin. Currently, construction is underway and expected to be completed in the second quarter of 2020.
MURFREESBORO, Tenn.–(BUSINESS WIRE)–National Health Investors, Inc. (NHI) has entered into an agreement to finance the development of a 144-bed skilled nursing facility in Oak Creek, Wisconsin, near Milwaukee, for a commitment of $25,350,000 with a 9.5% initial yield. The yield earned during construction will be capitalized into NHI’s investment. The initial funding under the commitment totaled $4,700,000 and construction is underway and expected to be completed in the 2nd quarter of 2020. A 12-year lease term begins post-construction with two 10-year renewals and a 2.0% annual escalator. In addition, there is a $2,000,000 earn out based on the operator meeting certain operating metrics in 2024 and 2025. The facility, Ignite Medical Resort Oak Creek, will be operated by a tenant entity owned by affiliates of Villa Healthcare (“Villa”) and Ignite Medical Resorts (“Ignite”).
Eric Mendelsohn, NHI’s President and CEO, stated, “We are excited to enter into a new relationship with Villa and Ignite, under a newly formed entity by principals with extensive experience operating large portfolios of skilled nursing facilities and strong relationships in the market area. We believe this new relationship will provide an excellent opportunity to expand our presence in this market.”
Ben Israel, President of Villa Healthcare, stated, “Villa has had great success in the State of Wisconsin and we are looking forward to furthering our commitment to the Milwaukee Market. Opening the newest and most modern Skilled Nursing Facility in the State of Wisconsin through this new partnership with NHI, as well as continuing our ongoing relationship with Ignite Medical Resorts in this venture, was an easy decision as their values align with ours.”
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.