Attached files
| file | filename |
|---|---|
| 8-K - Sentio Healthcare Properties Inc | v170572_8k.htm |
| EX-10.1 - Sentio Healthcare Properties Inc | v170572_ex10-1.htm |
| EX-10.2 - Sentio Healthcare Properties Inc | v170572_ex10-2.htm |
| EX-99.2 - Sentio Healthcare Properties Inc | v170572_ex99-2.htm |
Exhibit
99.1
Cornerstone
Growth & Income REIT
Acquires
$5.2 Million Assisted Living Facility in Columbus, IN
|
(Irvine,
CA) December 30,
2009 - Cornerstone Real Estate Funds, and its strategic alliance
partner and sub-advisor Servant Healthcare Investments, announced a
healthcare real estate acquisition today. The Cornerstone
Growth & Income REIT has acquired Greentree at Westwood, a $5.2
million assisted living facility in Columbus, IN. Based on
annualized 11/30/09 net operating income (and assuming a 5% annual
property management fee) Cornerstone Growth & Income REIT was able to
acquire the property at nearly a 9.0% cap rate.
|
 |
Greentree
at Westwood is a 58-unit assisted living facility in Columbus,
IN. The property, constructed in 1998, is a three-story, 49,241
square foot facility situated on 4.5 acres. The management team at
Servant Healthcare believes the property is competitively positioned as it
intends to be licensed as a residential care facility which will enable it to
offer medication assistance and limited nursing services. This will
make it possible for the property to provide care for residents with higher
acuity needs at attractive rates compared to its two primary competitors in the
market. The property also has the potential to expand by adding a
memory care building which could potentially provide additional value creation
in the future.
 |
The
property has been managed by Provision Living since 2005 and they will
continue operating the property. Provision Living specializes
in assisted living services and assisted living based dementia
care. Provision Living currently operates 10 assisted living
properties and 3 memory care centers in Missouri, Mississippi, Illinois,
Indiana and Ohio. These properties represent nearly 900 units
and 425 employees.
This
transaction provides Provision Living with an ability to increase its
management fee if certain performance thresholds are
met. According to Servant Healthcare CEO, John Mark Ramsey,
“this type of structure ensures that the operator not only focuses on top
line revenue growth, but on expense control and bottom line growth (NOI)
as well.”
|
This
release contains forward-looking statements within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934. Such statements involve risk and uncertainties which could cause actual
results to vary materially form those expressed in or indicated by the
forward-looking statements. Factors that may cause actual results to differ
materially include changes general economic conditions, changes in real estate
conditions, changes in interest rates, lease-up risks, lack of financing
availability and lack of capital proceeds. Securities offered through Pacific
Cornerstone Capital, Inc. Member FINRA and SIPC. Investments are not FDIC
insured, not bank guaranteed and may lose value.