Care Capital Properties to acquire portfolio for $400m

Chicago-based real estate investment trust Care Capital Properties plans to acquire six behavioral health hospitals in a sale-leaseback transaction for $400 million and fund up to $50 million in capital expenditures to finance expansion and improvements in the portfolio.

The properties — located in California, Arizona and Illinois and containing a total of 712 beds — are currently owned by affiliates of Signature Healthcare Services, one of the largest privately owned behavioral healthcare providers in the United States.

Upon completion of the transaction, which is expected to occur in the second quarter of 2017, CCP will lease the properties to affiliates of Signature on a 10-year triple-net basis, with five renewals of five years each.