The real estate where six McGuire Group Inc. nursing homes sit in Erie, Niagara and Suffolk Counties has been acquired by a California-based real estate investment trust that specializes in owning health care-related facilities.
According to documents filed in Erie County, Niagara County and Suffolk County Clerk's offices, Nationwide Health Properties Inc. of Newport Beach, Calif. - one of the nation's largest health care-related REITs - paid $99.9 million for the six facilities.
McGuire Group will continue to run and operate the facilities. The deal is Nationwide Health Properties first in the Buffalo Niagara region.
"It is solely a sale/leaseback scenario," said James McGuire, McGuire president and chief executive officer. "The deal is very transparent. It is strictly a real-estate deal and doesn't effect our operations."
The sale covers:
• The Northpointe Health Care Facility on Nash Road in N. Tonawanda, which sold for $11.6 million. Northpointe, the region's 11th largest nursing home, has 200 beds.
• The Harris Hill Nursing Facility on Wehrle Drive near the Clarence/Lancaster border. Harris Hill sold for $21.15 million and has 192 beds. It is the region's 14th largest nursing home.
• The Seneca Health Care Center on Seneca Street in West Seneca sold for $8.87 million. Seneca Health Care, the region's 22nd largest nursing home, has 160 beds.
• The AutumnView Health Care Facility in Hamburg sold for $27 million. Located on Southwestern Boulevard, AutumnView, the region's 15th largest nursing home, has 188 beds.
• Garden Gate Health Care Facility on Union Road in Cheektowaga sold for $13 million. The facility, the region's 16th largest nursing home, has 184 beds.
• The Brookhaven Health Care Facility on Long Island sold for $17.1 million. Brookhaven has 160 beds.
Leases for the six facilities run between 20 years and 35 years.
A McGuire owned nursing home in Michigan was not part of the deal.
The McGuire Group has more than 2,000 employees and the nearly 1,100 patients that currently reside in one of the facilities. McGuire services more than 4,000 patients annually including those who stay for short term rehabilitation needs.
The sale/leaseback scenario is a familiar within the senior and assisted living industry with operators typically using the funds to recapitalize their own operations. McGuire said some of the proceeds will be used to finance more than $30 million his company has invested in the nursing homes. Other proceeds will cover existing mortgages and other debts.
"We want our patients, families and employees to understand that this sale is entirely separate from our health-care operating arm," McGuire said.
McGuire said the deal culminates more than two years of research and due diligence he and his company undertook.
The publicly-traded Nationwide Health Properties Inc. (NYSE: NHP) last year spent $924 million on similar deals. In this year's first quarter, the company expects to invest another $243 million, according a statement the company issued.
"A strong fourth quarter concluded an excellent year of investments in 2010 and 2011 is off to an impressive start with over $240 million of transactions set to close by the end of the first quarter," Douglas Pasquale, Nationwide Health Properties chairman and chief executive officer, said in a prepared statement.
The company's portfolio includes 637 properties including 287 senior housing facilities, 211 skilled nursing facilities, 120 medical office buildings, 11 continuing care retirement communities, 7 speciality hospitals and one asset that remains in development.