Senior Housing Properties To Buy 23 Class A MOBs For About $539 Mln

(RTTNews) - Senior Housing Properties Trust (SNH) Tuesday said it will buy twenty three Class A medical office buildings, or MOBs, for nearly $539 million. The properties contain about 2.2 million square feet and are located in 12 states. The acquisition GAAP capitalization rate is expected to be nearly 6.4 percent.

Commenting on the purchase, David Hegarty, COO of the company said: "The acquisition of this Class A MOB portfolio fits squarely within SNH's stated strategy to continuously diversify and strengthen its healthcare assets. The large majority of these MOBs are recently built, Class A properties, and the average age of the portfolio is just 10 years."

Currently the company expects to assume about $30 million of mortgage debt on two of the MOBs to be bought and to fund the balance of the purchase price using cash on hand and drawings under its unsecured revolving bank credit facility.

The acquisition is expected to be complete during the first calendar quarter of 2015.