Real estate investment trust National Health Investors has acquired a 98-unit independent living community in Chehalis, Washington for $9.8 million, the company announced Tuesday. It has also leased the community to a partnership between Marathon Development and Village Concepts Retirement Communities.
Tennessee-based NHI will also earmark $350,000 for capital improvements at the center.
The 15-year lease carries an initial annual rate of 7.25 percent, plus annual escalators from 2 to 3 percent. The acquisition funding hinged on NHI's revolving credit facility.
The independent living community, which is filled to 95 percent capacity, was built in 1986, with additions made in1993 and 2000. There is land available for expansion.
Eric Mendelsohn, NHI's CEO and president, said the partnership between Marathon and Village Concepts should provide "an excellent addition to our portfolio."