Nationwide Health Properties Inc., a Newport Beach-based owner of nursing homes and other healthcare facilities, said Thursday it’s paying $419 million for 32 sites from Hearthstone Assisted Living Inc. of Houston.
Hearthstone plans to lease back the facilities from Nationwide. Located in 10 states, the sites are assisted living centers for the elderly and Alzheimer’s patients.
Nationwide is paying $12 million in debt and closing costs as part of the deal.
The transaction is expected to close by May 31, subject to regulatory approval.
Nationwide said it expects yearly rent of $431 million under the terms of the proposed lease with Hearthstone.
The deal calls for yearly rent increases of about 2% and a portion of Hearthstone’s revenue from the sites.
