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Care Capital in $450M Hospital SLB

CHICAGO—Care Capital Properties will acquire six behavioral health properties from affiliates of Signature Healthcare Services.

By Paul Bubny | paulbubny | Updated on April 11, 2017

Exterior of hospital Chicago Lakeshore Hospital, one of the properties in the portfolio which CCP is acquiring.

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.

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