Publicly registered, non-traded real estate investment trust (REIT) Summit Healthcare REIT, Inc. (Summit) recently announced that through an affiliate it entered into a joint venture (JV) with Best Years, LLC, which is managed by Union Life Insurance Co., Ltd, a Chinese corporation.
The JV will own six properties in Summit’s portfolio. Best Years owns 90 percent of the interests and the remaining 10% are owned by the Summit affiliate. The properties include two skilled nursing facilities in Lamar and Monte Vista, Colorado, an assisted living facility in Front Royal, Virginia, a skilled nursing / assisted living facility in Myrtle Point, Oregon, a skilled nursing / independent living facility in Portland, Oregon, and an independent living facility in Salem, Oregon.
Summit sold its interest in the properties to the new JV. As a result, Best Years, LLC contributed cash of about $9.9 million of which $715,000 was used to reduce a loan cross-collateralized by four of the properties.
Summit Healthcare Operating Partnership, the affiliate that entered into the JV with Best Years, received about $9.2 million as a result of the transaction and plans to use the proceeds to acquire additional healthcare facilities.
“This joint venture represents our commitment to continue investing in quality healthcare facilities to meet the demands of the nation’s aging population, and to expand the REIT’s portfolio for the benefit of our shareholders,” commented Kent Eikanas, President and Chief Operating Officer of Summit Healthcare REIT, Inc.
He added, “It is also a strong endorsement of Summit’s strategy.”
Currently, Summit owns interests in 17 long-term triple-net leased healthcare facilities.