Summit Healthcare REIT, Inc. Acquires Portfolio of Skilled Nursing Facilities through Joint Venture
Irvine, Calif., (August 27, 2012) – Summit Healthcare REIT, Inc. made an investment in a joint venture that acquired that acquired two skilled nursing facilities on August 3, 2012, collectively known as the “Portland Properties,” located in the greater Portland, Oregon metropolitan area in an $8.6 million transaction.*
The Portland Properties have 102 beds in operation and are licensed for 114 beds. In addition to skilled nursing services, one of the properties also specializes in bariatric treatments for obesity.
The Portland Properties are leased to the current operator of the facilities under a fifteen-year triple net lease. The operator has over twenty years of experience operating skilled nursing facilities in the Pacific Northwest and has operated these properties since 2005. Including the Portland Properties, the operator manages four skilled nursing facilities in Oregon.
“We are pleased with the beginning of a long term relationship with a great regional operator that is poised for growth. The relationships with the local referral sources and the state that the operator enjoys make the current opportunity as well as future opportunities exciting,” said Kent Eikanas, President and Chief Operating Officer of Summit Healthcare REIT, Inc.
Summit Healthcare REIT, Inc. acquired a 95% equity interest in Cornerstone Healthcare Partners, LLC, the joint venture entity, while joint venture partner Cornerstone Healthcare Real Estate Fund acquired the remaining 5% equity interest.
About Summit Healthcare REIT, Inc.
Summit Healthcare REIT, Inc. is a publicly registered non-traded REIT that invests in investment grade real estate located throughout the United States. Summit Healthcare REIT, Inc. has acquired 15 properties for a total purchase price of $144.2 million since its commencement in 2006. Since 2011, four of those properties have been disposed. The current portfolio includes multi-tenant industrial properties along with 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.