"They were in some markets that they thought didn't fit their corporate goals, so we moved the facilities to other operators," Crabtree told GlobeSt.com.
Health Care REIT just owns the facilities in question, and rents them to the managers. Summerville thought they should move out of some facilities that were not in their core markets, Crabtree said.
Summerville agreed to pay $11.41 million to Health Care as part of therestructuring agreement. This included $6.1 million in cash, 2.5 percent ofthe common stock of the reorganized Summerville (valued at $1.6 million) anda secured note of $3.71 million. Because Health Care REIT owned stock in Summerville, after the restructuring Health Care decided to write off its preferred stock investment of $2 million in the fourth quarter.
The list of properties that were switched from Summerville management is asfollows, with their lease investments:Dunwoody Gardens of Atlanta., $16,552,340, now operated by Merrill Gardens.
Brick of Brick, N.J., $10,473,504, now operated by Gordon Health Ventures.
Pineville of Charlotte, N.C., $11,047,412, now operated by Southern AssistedLiving.
Durham of Durham, N.C., $11,615,286, now operated by Southern AssistedLiving.
Ellicott City of Ellicott City, Md., $14,317,942, now operated byMorningside Developments.
Gardnerville of Gardnerville, Nev., $13,357,027, now operated by MerrillGardens LLC.
Sarah Pierce of Litchfield, Conn., $8,864,156, now operated by Gordon HealthVentures.
Merrillville of Merrillville, Ind., $7,377,368, now operated by BalancedCare Corporation.
Naples of Naples, Fla., $18,195,736, now operated by Merrill Gardens LLC.
Roswell of Roswell, Ga., $10,256,844, now operated by Merrill Gardens LLC.
Kenner of Kenner, La., $10,966,382, is still operated by Summerville.
Total lease investments with Summerville was $133,023,997.
Summerville was founded in 1996, and operates 42 communities.
Health Care is a self-administered real estate investment trust that investsin health care facilities; primarily nursing homes and assisted livingfacilities.
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