National Health Investors will finance the development of a 144-bed skilled nursing facility in Oak Creek, WI, near Milwaukee, for a commitment of $25.35 million, with a 9.5% initial yield, the firm said.
Construction has begun, and the facility is expected to be finished in the second quarter of 2020. A 12-year lease term begins post-construction with two 10-year renewals and a 2.0% annual escalator, the firm said.
The facility will be called Ignite Medical Resort Oak Creek and will be operated by a tenant owned by affiliates of Villa Healthcare and Ignite Medical Resorts.
“We are excited to enter into a new relationship with Villa and Ignite, under a newly formed entity by principals with extensive experience operating large portfolios of skilled nursing facilities and strong relationships in the market area,” said Eric Mendelsohn, NHI’s president and CEO. “We believe this new relationship will provide an excellent opportunity to expand our presence in this market.”
