NHI Enters Into $50 Million Mezzanine Loan with Montecito Medical Real Estate

MURFREESBORO, TN / ACCESSWIRE / April 20, 2021 / National Health Investors, Inc. (NYSE: NYSE: NHI) announced that it has signed a US $ 50 million mezzanine loan agreement with Montecito Medical Real Estate for a new medical office building fund called the Montecito Two Rivers Fund, LLC (the “Fund”). . The fund will invest in medical real estate, including medical office buildings, across the United States and is expected to acquire up to $ 200 million in assets, including secured third-party financing and equity provided by Montecito. Montecito Medical Real Estate is a privately held Nashville, TN based company specializing in healthcare acquisitions that has acquired more than $ 4 billion in medical real estate, including approximately 1.4 billion, since its inception in 2006 Billion US dollars in the past 26 months.

NHI will receive interest on its loan with a current pay rate of 9.5% and an additional 2.5% interest for certain future corporate events, including asset sales and recapitalizations. The identification and closure of the assets is expected to occur from the second quarter of 2021 and continue until the fund is fully invested or two years. The term of the mezzanine loan is five years, starting with the previous full use of the mezzanine funds or two years, and includes two extensions of one year.

Eric Mendelsohn, President and CEO, stated, “We are excited to partner with one of the leading owners and operators of MOBs. I am also excited to achieve a long-term goal of doing more business in Nashville, the hub of the healthcare industry United States.”

Chip Conk, CEO of Montecito Medical added, “We look forward to working closely with NHI and leveraging our expertise to acquire and operate medical office buildings that are being anchored by dominant physician groups and healthcare systems across the country.”

About Montecito Medical Real Estate

Montecito Medical is one of the largest privately held companies in the country specializing in healthcare real estate acquisitions and financing medical real estate development. Montecito is a premier resource for both medical property owners and healthcare providers looking to monetize or expand their holdings. Since 2006, more than $ 4 billion in medical real estate transactions have been completed in the United States. Headquartered in Nashville, TN, Montecito has been named a “Key Influencer in Healthcare Real Estate” by GlobeSt.com and the editors of Healthcare Real Estate Insights.

About NHI

National Health Investors, Inc. (NYSE: NHI), founded in 1991, is a real estate investment trust specializing in sale-leaseback, joint venture, mortgage and mezzanine financing for on-demand, discretionary senior housing and medical investments Has. NHI’s portfolio consists of independent, mentored and memory care communities, senior citizens’ entry communities, qualified care facilities, medical office buildings and specialty hospitals. Further information is available at www.nhireit.com.

CONTACT:
Contact: Dana Hambly, Vice President, Investor Relations
Phone: (615) 890-9100

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding the expected future financial position of the company, the tenants, operators, borrowers or managers, the earnings position, the cash flows, the funds from operations, the dividend and dividend plans, the financing possibilities and plans, the capital market transactions, the business strategy, budgets, Projected costs, operating metrics, investments, competitive positions, acquisitions, investment opportunities, divestments, acquisition integration, growth opportunities, expected lease income, continued qualification as a Real Estate Investment Trust (“REIT”), plans and goals of management For future operations, continuous performance improvements, the ability to service and refinance our debt obligations, the ability to fund growth opportunities, and similar statements including, without limitation, statements such as the words “may,” “will,” “believe,” “anticipate,” “expect,” “intends Acts, “estimates,” “plans” and other similar expressions are forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties that could cause our actual results in future periods to differ materially from those projected or contemplated in the forward-looking statements. These risks and uncertainties include, but are not limited to: the impact of COVID-19 on our renters, borrowers, the economy and the company; the operational success of our tenants and borrowers in collecting our leasing and interest income; the success of real estate development and construction activities that may not produce the expected operating results; the risk that our tenants and borrowers will be subject to bankruptcy or bankruptcy proceedings; Risks associated with government regulations and debtors, primarily Medicare and Medicaid, and the impact that lower reimbursement rates would have on the business of our renters and borrowers; the risk that our tenants ‘and borrowers’ cash flow will be adversely affected by increased liability claims and liability insurance costs; Risks related to environmental laws and costs related to liabilities related to hazardous substances; the risk that we may not be fully compensated for future litigation by our lessees and borrowers; the success of our future acquisitions and investments; our ability to reinvest cash in real estate investments in a timely manner and on acceptable terms; the potential need to incur more debt in the future that may not be available on terms that are acceptable to us; Our ability to meet covenants related to our debt that impose certain operational restrictions and breach of those covenants could materially affect our financial condition and results of operations. the risk that the illiquidity of real estate investments could affect our ability to respond to adverse changes in the performance of our real estate; Risks associated with our investments in unconsolidated companies, including our lack of sole decision-making power and confidence in the financial condition of other interests; Our income reliance mainly results from fixed income investments in real estate assets, while part of our debt is paid at floating rates. the risk that our assets will be subject to impairment charges; and our reliance on our ability to continue to qualify as a real estate mutual fund for taxation. Many of these factors are beyond the control of the company and its management. The company undertakes no obligation to update the foregoing or other forward-looking statements unless required by law and such statements speak only as of the date of their publication. Investors are encouraged to carefully review and review the various statements made by NHI in its periodic reports filed with the Securities and Exchange Commission, including the risk factors and other information disclosed in NHI’s Annual Report on Form 10-K for the most recently completed financial year to consider. Copies of these documents are available free of charge on the SEC’s website at https://www.sec.gov or on the NHI website at https://www.nhireit.com.

SOURCE: National health investors

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