$113M Loan for Health Care REIT

NEWPORT BEACH, CA-Health Care Property Investors Inc. has closed a $112.75 million secured loan and a $12.25 million equity investment with subsidiaries of American Retirement Corp.

The company, a real estate investment trust specializing in health care properties, also announced $18 million of additional investments during the third quarter, bringing to $331 million the total of its year-to-date new investments.

The loan and equity investment were part of a previously announced transaction with American Retirement Corp. The $112.75 million loan will mature in five years and was made to a subsidiary of American Retirement that owns interests of nine of its large core retirement facilities, which have an occupancy level of 94%. Health Care Property Investors made the $12.25 million equity investment in return for a 9.8% ownership of certain subsidiaries of American Retirement.

The REIT’s new investments during the third quarter included a 61,100 sf medical office building in Denver that it bought for $10.4 million from the Boyer Co. The office building is adjacent to HealthOne and South Suburban Medical Centers.Other acquisitions included two 16-year-old nursing facilities totaling 187 beds that it acquired for $5.4 million, or $29,000 per bed, in Texas and Indiana.

Health Care Property Investors’ investment portfolio as of Sept. 30 consisted of 442 facilities in 42 states. These include 183 long-term care and 88 assisted living facilities, 85 medical office buildings, 35 physician group practice clinics, 21 acute-care hospitals, nine freestanding rehabilitation facilities, seven health-care laboratory and biotech research facilities, and 14 retirement living communities.