The company plans to fund up to $50M in capital expenditures to finance expansion and improvements in the portfolio.
Upon completion of the transaction in 2Q17, the company will lease the properties to affiliates of Signature on a ten-year triple-net basis, with five renewals of five years each, initial GAAP yield on the transaction is expected to be approx. 8.7%, and the investment was underwritten at 1.5x EBITDAR coverage on cash rent.
“This accretive transaction will enable us to efficiently recycle capital from our dispositions and diversify our portfolio into a new industry sector with a strategic operator, favorable investment attributes and strong cash flows.” said Raymond J. Lewis , CEO.
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