For CCP, the deal establishes a new relationship with Signature, which CEO Raymond J. Lewis notes has “an outstanding track record as a behavioral health care provider.” In addition to completing the present transaction, will be funded through cash on hand, disposition proceeds and borrowings under its credit facility, CCP will have a right of first offer on future real estate investment opportunities with Signature.

Goldman Sachs advised Signature on the transaction. It's expected to close during the second quarter.

CHICAGO—Care Capital Properties Inc., which focuses on the post-acute sector, said Monday afternoon it had agreed to to acquire six behavioral health hospitals in a sale-leaseback transaction with affiliates of Signature Healthcare Services. CCP will pay $400 million for the properties, located in California, Arizona and Illinois, and will also fund up to $50 million in capital expenditures to finance expansion and improvements in the portfolio.

CCP will lease the properties to affiliates of Signature on a 10-year triple-net basis, with five renewals of five years each. The initial GAAP yield on the transaction is expected to be approximately 8.7%, and the investment was underwritten at 1.5x EBITDAR coverage on cash rent.

The six properties primarily provide acute inpatient and outpatient psychiatric care, addiction services, geriatric psychiatric care and child and adolescent psychiatric care. All six either have recently been expanded or are currently in planning or under development to increase bed capacity; current capacity totals 712 beds.

“Signature is committed to the behavioral health space and will continue to invest in growing our platform through our development pipeline and by expanding existing facilities in underserved markets,” says Signature CEO Soon K. Kim, M.D. “We look forward to the potential of growing our relationship with CCP.”

For CCP, the deal establishes a new relationship with Signature, which CEO Raymond J. Lewis notes has “an outstanding track record as a behavioral health care provider.” In addition to completing the present transaction, will be funded through cash on hand, disposition proceeds and borrowings under its credit facility, CCP will have a right of first offer on future real estate investment opportunities with Signature.

Goldman Sachs advised Signature on the transaction. It's expected to close during the second quarter.