Mainstreet sells Wellbrooke of Westfield to affiliated REIT
Jun 20 2013
Carmel, Indiana…Mainstreet Property Group, one of the country’s largest and most innovative developers of seniors housing and care properties, has sold Wellbrooke of Westfield, its newly-built, fully-leased, 100-unit seniors housing and care facility, to HealthLease Properties Real Estate Trust (HLP.UN). The facility is leased on a triple-net basis to Life Care Services, a leading provider of seniors housing and care with retirement communities serving over 28,000 residents in 29 states.
Wellbrooke of Westfield is located in Hamilton County, Indiana. The Next GenerationTM facility is a hallmark of Mainstreet’s market-leading approach to health care property design and development. Next GenerationTM designs offer hotel-like properties that transform seniors housing and care into a hospitality experience by incorporating concierge-based services to specifically cater to the evolving demands of the growing senior population. Of the 100 units at Westfield, 70 are licensed to provide skilled nursing, rehabilitation and therapy services, while the other 30 provide assisted living.
Wellbrooke will be acquired under the REIT’s pre-existing development agreement with Mainstreet that provides the REIT with a right to acquire any seniors housing and care properties developed by Mainstreet. Subject to the approval of the Toronto Stock Exchange and the satisfaction of other customary closing conditions, HealthLease will acquire the property for its appraised value of $17,860,000, in a combination of assumed debt and exchangeable REIT units. The exchangeable units represent one-hundred percent of Mainstreet’s net proceeds from the sale with no additional cash consideration being paid to Mainstreet. HealthLease will also acquire certain cash assets for their net present value of $2,470,000.
Wellbrooke of Westfield, which opens this month, is the fourth property developed by Mainstreet for the REIT. In February 2013, Mainstreet announced the completion of three development properties – two in Indiana and one in Illinois – which were sold to the REIT in its initial public offering. Mainstreet has a deep pipeline of development opportunities, including seven properties currently under development that will be offered to the REIT upon completion.