ATLANTA, May 3, 2017 /PRNewswire/ -- AdCare Health
Systems, Inc. (NYSE MKT: ADK) (NYSE MKT: ADK.PRA), a
self-managed healthcare real estate investment company that invests
primarily in real estate purposed for senior living and long-term
healthcare, today announced it completed the purchase of an
assisted living and memory care facility with 106 operational beds
located in Alabama for
$5.5 million on May 1, 2017.
The Company also announced the commencement of a long-term lease
to operate the facility to an affiliate of C.Ross Management, LLC.
C.Ross, AdCare's largest operator, operates 22 facilities in
Georgia and Alabama through its affiliates. The terms of
the long-term lease agreement, include a 13-year term with initial
annual cash rent of $450,000 in the
first year and a 2% annual rent escalator.
Allan Rimland, AdCare's President
and Chief Executive Officer, commented, "The purchase of this
facility provided us with the opportunity to deploy cash at an
attractive return on capital and expands our presence in
Alabama. In addition, an affiliate
of C.Ross Management operates the adjacent Coosa Valley skilled
nursing facility, thereby providing opportunities for operational
improvements at each of the properties. Most importantly, this
facility represents the first acquisition by the company after the
transition of the company from an owner, operator and manager of
senior housing facilities to a property holding and leasing
company."
The company financed the acquisition with conventional mortgage
debt of $4.1 million with a term of
five years bearing an interest rate of 4.50% per annum and cash on
hand of $1.4 million.
About AdCare Health Systems
AdCare Health Systems, Inc. (NYSE MKT: ADK) (NYSE MKT: ADK.PRA)
is a self-managed healthcare real estate investment company that
invests primarily in real estate purposed for senior living and
long-term healthcare through facility lease and sub-lease
transactions. AdCare currently owns, leases or manages for third
parties 30 facilities. For more information about AdCare, visit
www.adcarehealth.com.
Important Cautions Regarding Forward-Looking
Statements
Statements contained in this press release that are not
historical facts may be forward-looking statements within the
meaning of federal law. Such statements can be identified by the
use of forward-looking terminology, such as "believes," "expects,"
"plans," "intends," "anticipates" and variations of such words or
similar expressions, but their absence does not mean that the
statement is not forward-looking. Forward-looking statements
reflect management's beliefs and assumptions and are based upon
information currently available to management and involve known and
unknown risks, results, performance or achievements of AdCare,
which may differ materially from those expressed or implied in such
statements. Such factors are identified in the public filings made
by AdCare with the Securities and Exchange Commission, including
AdCare's Annual Report on Form 10-K for the year ended December 31, 2016, and AdCare's subsequently
filed Quarterly Reports on Form 10-Q. There is no assurance that
such factors or other factors will not affect the accuracy of such
forward-looking statements. Except where required by law, AdCare
undertakes no obligation to revise or update any forward-looking
statements to reflect events or circumstances after the date of
this press release.
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SOURCE AdCare Health Systems, Inc.