CapitalSource To Acquire 38 Healthcare Properties for $211M

CHEVY CHASE, MD-CapitalSource Inc. has executed an agreement to purchase 37 skilled nursing facilities and one assisted living facility for $211 million. The purchase is being structured as a down-REIT transaction. A significant portion of the purchase price is expected be paid in the form of interests in a newly formed LLC in which CapitalSource will be the managing member and majority owner. The LLC interests issued to the sellers will be exchangeable for shares of CapitalSource’s common stock. Last year, CapitalSource announced its intention to be taxed as a REIT starting this year.

The acquisitions are currently subject to long-term, triple-net leases, and all of the properties are managed by Senior Health Management LLC. The transaction remains subject to completion of due diligence and is expected to close this quarter.