WILTON, CT-The underlying commercial real estate in Wellington Healthcare Services' skilled nursing facilities portfolio went for nearly $167 million in a transaction with Griffin-American Healthcare REIT II. It was sold by Westport Capital Partners and the Canadian-based Reichmann International Development Co. According to Westport, the medical office portfolio encompasses 1,364 beds at 10 facilities in the Southeast. Wellington affiliates entered into a master lease, which has an initial term of 15 years. Subsidiaries of Wellington will continue to operate the 10 facilities.

In a release, Russel S. Bernard, managing principal of Westport, says, "Despite the challenging regulatory environment, Wellington’s management team was successful in growing the company’s operating income by a double-digit compounded annual growth rate since 2007. We are very pleased with the positive outcome of this transaction."

Westport and RIDC acquired a majority interest in Wellington in 2007, Westport says. At this time, Wellington had control over 11 senior care properties in Alabama, Georgia, Louisiana and Tennessee. In a release, Westport explains that during the holding period, both it and RDIC negotiated to buy out leasehold interest in four commercial real estate properties, divest two non-core properties and take on a property in Georgia. The overall outcome of the portfolio ownership restructuring was the fee simple ownership of 10 skilled nursing facilities.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM Digital Member, you’ll receive:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.