Weekly Real Estate News
National Health Investors has invested $107.7 million, including transaction costs, to acquire six senior housing properties totaling 443 units across Kentucky, Michigan and Tennessee.
The Murfreesboro, Tennessee-based REIT said it expects to invest another $2.3 million during the first year. The properties will enter NHI’s Senior Housing Operating Portfolio, or SHOP, segment and will be managed by Allegro Living Management, an existing NHI relationship.
The communities are expected to produce an initial net operating income yield of approximately 7%, or 6.6% after routine capital expenditures.
NHI has more deals in the pipeline
The acquisition comes as NHI continues to recycle capital into senior housing. The company said it currently has about $164.3 million of investment opportunities under signed letters of intent and another $51.7 million tied to real estate purchase options.
NHI also said it is evaluating an additional pipeline of roughly $285 million in investments, excluding portfolio transactions. Those opportunities include SHOP investments, sale-leasebacks and loans with purchase options, primarily involving senior housing.
The REIT expects to use proceeds from a Section 1031 exchange initiated by its NHC portfolio sale for a significant portion of the signed opportunities. If completed, those exchanges would defer recognition of a substantial portion of the taxable gain from that sale.
NHI owns, leases, operates and finances senior housing and medical real estate. Its portfolio spans independent living, assisted living, entrance-fee communities, senior living campuses, skilled nursing facilities and hospitals.
The latest acquisition is part of a broader capital shift underway among health care REITs toward operating senior-housing portfolios, where owners can participate more directly in property-level performance rather than relying solely on contractual lease payments.
