Mainstreet to acquire CareIT Portfolio for $425m
In a partnership with Tiptree Inc. and other subsidiaries, Mainstreet Health Investments is slated to acquire Care Investment Trust for approximately $425 million.
The healthcare portfolio encompasses 35 independent living, assisted living and memory care properties and seven skilled nursing assets, comprising a total of 3,718 suites/beds located across 11 states. The deal is expected to close by the first quarter of 2018.
The acquisition will include 80 percent private-pay assets and eight new operating partners. Moreover, the deal is expected to add eight new states to Mainstreet’s existing platform and strengthen its presence in three states in which it currently own properties.
The portfolio consists of 24 properties that are leased to operators under long-term triple-net leases and 18 operating properties in joint venture arrangements with senior housing operators in which Mainstreet will own most of the real estate and the operations. Following the completion of the transaction, Mainstreet’s portfolio will be comprised of approximately 52 percent independent living, assisted living and memory care suites and 48 percent skilled nursing and transitional care beds.
Mainstreet also intends to rename and re-brand itself as Invesque Inc. The name change should be effective Jan. 3, 2018, subject to shareholders’ approval.
Mainstreet’s investment platform will amount to a total of 80 properties with 8,536 suites/beds across the United States and Canada. The concentration of its largest operator, Symphony, will be reduced from 56 percent to 32 percent.
