Health and Retirement Properties Trust has agreed to purchase nine nursing homes in Vermont and New Hampshire for $35 million. The facilities will be leased to a private company. The Newton, Mass.-based real estate investment trust also purchased a medical laboratory in Sacramento, Calif., for $3.9 million, which it leased to Unilab Corp., and issued a letter of intent to provide $25.6 million in mortgage financing to a private partnership for 10 nursing homes in Texas. Recently, HRPT closed on a deal to expand its working capital credit facility to $170 million from $120 million. It also completed the purchase and lease of 14 retirement facilities for $320 million from Host Marriott Corp.
Standard & Poor's Corp. downgraded 156-bed Merle West Medical Center's A- rating to BBB+, affecting $8.3 million in debt. The Klamath Falls, Ore., hospital's rating was lowered because of an increase in total debt outstanding, Standard & Poor's said. Meanwhile, the New York-based credit-rating agency raised its rating on 165-bed Northeast Medical Center Hospital in Humble, Texas, to BBB from BBB-, reflecting improved financial performance, recruitment of areawide specialists, development of additional services and improved management-staff relationships. The upgrade affects a total of $15 million in debt.
Charter Medical Corp.'s subsidiary, Group Practice Affiliates, has agreed to purchase Adult Behavioral Care, a Fairfax, Va.-based group practice that specializes in geriatric mental health. Adult Behavioral Care currently provides services to about 50 long-term-care facilities in Virginia and Maryland. In addition, the company agreed to enter a joint venture with InterCare Behavioral Health Services, a Pittsburgh-based firm that manages mental health services for 140,000 individuals through capitated risk contracts. Terms weren't disclosed. Macon, Ga.-based Charter operates a chain of 101 psychiatric hospitals.
Meditrust said its investments this year will exceed $350 million, surpassing previous projections for the year and setting a record for the Needham Heights, Mass.-based real estate investment trust. Without revealing the number or names of the facilities, Meditrust said its board of trustees has approved more than $225 million in long-term-care facility investments. Those deals are expected to close before year-end. Meditrust said the facilities are located throughout the country and are run by existing operators of its facilities and companies that are new to the REIT.
LTC Properties said it closed $18.7 million in mortgage loans to 11 skilled-nursing facilities. The facilities are in seven states and have a total of 1,202 beds. The Oxnard, Calif.-based real estate investment trust has completed more than $122 million in new investments this year and has commitments to fund another $17.7 million.