Summit Healthcare REIT, Inc. Acquires Memory Care & Skilled Nursing Facilities Through JV
Irvine, Calif., (September 19, 2012) – Summit Healthcare REIT, Inc. (“Summit”) made an investment in a joint venture that acquired a 71-bed memory care facility in Medford, Oregon in an $8.5 million transaction and a 150-bed skilled nursing facility in Galveston County, Texas in a $15.0 million transaction.* Both facilities were acquired through sale/ leaseback transactions and are leased under ten-year triple net leases.
“We are excited about both transactions. Both operators have proven to be industry leaders with an ability to provide high levels of care while maintaining high occupancy rates,” said Kent Eikanas, President and Chief Operating Officer of Summit Healthcare REIT, Inc.
Through the joint venture entity, Cornerstone Healthcare Partners, LLC, Summit acquired a 95% interest in the two facilities, while joint venture partner Cornerstone Healthcare Real Estate Fund acquired the remaining 5% interest. Debt financing was provided by GE Capital, Healthcare Financial Services.
About Summit Healthcare REIT, Inc.
Summit is a publicly registered non-traded REIT that invests in investment grade real estate located throughout the United States. Since its commencement in 2006, Summit has acquired 17 properties for a total purchase price of $167.7 million. Since 2011, four of those properties have been disposed. The current portfolio includes nine multi-tenant industrial properties and four long-term triple net leased healthcare facilities.
For more information, please contact Shelly Taylor at (800) 978-8136.
*As a result of this joint venture, the Summit owns a 95% economic interest in the properties This material does not constitute an offer to sell or a solicitation of an offer to buy Summit Healthcare REIT, Inc. This release contains forward-looking statements relating to the business and financial outlook of Summit Healthcare REIT, Inc. that are based on our current expectations, estimates, forecasts and projections and are not guarantees of future performance. Actual results may differ materially from those expressed in these forward-looking statements, and you should not place undue reliance on any such statements. A number of important factors could cause actual results to differ materially from the forward-looking statements contained in this release. Such factors include those described in the Risk Factors sections of the Summit Healthcare REIT, Inc.’s annual report on Form 10-K for the year ended December 31, 2011, and quarterly reports for the periods ended March 31, 2012, and June 30, 2012. Forward-looking statements in this document speak only as of the date on which such statements were made, and we undertake no obligation to update any such statements that may become untrue because of subsequent events. We claim the safe harbor protection for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.