Omega Acquires 16 Skilled Nursing Facilities for $200M, Gives Hurricane Harvey Update

Allison Pointe Healthcare Center, Indianapolis Allison Pointe Healthcare Center, Indianapolis

HUNT VALLEY, Md. — Omega Healthcare Investors (NYSE: OHI) has acquired 16 skilled nursing facilities in Indiana for $200 million through two separate transactions. In addition, the company announced that two of its skilled nursing facilities were evacuated during Hurricane Harvey last week.

Omega owns 32 skilled nursing facilities that were impacted by Hurricane Harvey. Only two, both located along the Sabine River that separates Texas from Louisiana, were closed. The names and specific locations of those facilities were not disclosed, and no further information on the extent of the damage was released.

For the acquisitions, Omega acquired 15 facilities totaling 2,074 beds from two unrelated third parties and leased them to CommuniCare Health Services. Simultaneously, Omega received a $9.4 million loan to purchase the leasehold interest in a 135-bed skilled nursing facility, also leasing the property to CommuniCare.

CommuniCare will replace Kindred Healthcare as the operator of all 16 facilities. The company plans to keep the full staff in place. The acquired properties include: 

  • Allison Pointe Healthcare Center, Indianapolis 
    Bridgewater Healthcare Center, Carmel
    Great Lakes Healthcare Center (formerly Kindred Dyer Healthcare), Dyer
    Eagle Creek Healthcare Center, Indianapolis
    Greenfield Healthcare Center, Greenfield
    Greenwood Healthcare Center, Greenwood
    Harrison Healthcare Center, Corydon
    Indian Creek Healthcare Center, Corydon
    Kokomo Healthcare Center, Kokomo
    Rolling Hills Healthcare Center, New Albany
    Sellersburg Healthcare Center, Sellersburg
    Southpointe Healthcare Center, Indianapolis
    Southwood Healthcare Center, Terre Haute
    Valley View Healthcare Center, Elkhart
    Wedgewood Healthcare Center, Clarksville
    Wildwood Healthcare Center, Indianapolis

The properties were added to the operator’s master lease with Omega, which includes an initial cash yield of 9.5 percent with 2.5 percent annual escalators.

Omega is a publicly traded REIT focused on the long-term care industry, with 1,000 properties in 42 states and the United Kingdom. The company has partnerships with 77 different operators.

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