National Health Investors Inc. NHI, the Murfreesboro, TN-based real estate investment trust (“REIT”) has entered into a construction mezzanine loan agreement with its Charlotte, NC-based tenant, Senior Living Communities, LLC (“SLC”). The total loan commitment of $14 million is for the construction of a senior housing community in Daniel Island, SC, near Charleston. This mezzanine loan agreement with Senior SLC helps National Health Investors bolster its relationship with the former and provides the opportunity to add more top-class senior housing communities in its portfolio.
The loan will be funded on a monthly basis and is expected to be fully funded by the end of this year. It bears an annual rate of interest of 10% which is slated to mature in five years. Construction work at the project is likely to begin soon and is expected to be completed by the end of next year.
National Health Investors invests in income producing health care properties, primarily in the long-term care industry. Presently, National Health Investors leases eight senior housing communities to SLC. This includes independent living units, assisted living/memory care units and skilled nursing beds of 1033, 410 and 228, respectively.
National Health Investors currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the REIT space include Douglas Emmett Inc DEI, DCT Industrial Trust Inc. DCT and Digital Realty Trust Inc. DLR. Each of these stocks holds a Zacks Rank #2 (Buy).
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