Mainstreet To Acquire CareIT Portfolio for $425M

A partnership between Mainstreet and Tiptree is set to purchase CareIT’s portfolio. The properties include 42 senior living communities and health-care facilities.
Invesque Inc.
Mainstreet Health Investments/Invesque Inc.

In a partnership with Tiptree Inc. and other subsidiaries, Mainstreet Health Investments is slated to acquire Care Investment Trust for approximately $425 million.

The health-care portfolio encompasses 35 independent living, assisted living and memory care properties and seven skilled nursing assets, comprising a total of 3,718 suites/beds located across 11 states. The deal is expected to close by the first quarter of 2018.

The acquisition will include 80 percent private-pay assets and eight new operating partners. Moreover, the deal is expected to add eight new states to Mainstreet’s existing platform and strengthen its presence in three states in which it currently own properties.

The portfolio consists of 24 properties which are leased to operators under long-term triple-net leases and 18 operating properties in joint venture arrangements with senior housing operators in which Mainstreet will own most of the real estate and the operations. Following the completion of the transaction, Mainstreet’s portfolio will be comprised of approximately 52 percent independent living, assisted living and memory care suites and 48 percent skilled nursing and transitional care beds.

New Brand

Upon closing, Mainstreet’s investment platform will amount to a total of 80 properties with 8,536 suites/beds across the U.S. and Canada. The concentration of its largest operator, Symphony, will be reduced from 56 percent to 32 percent. Furthermore, the transaction’s completion will lead the company in operating in 18 states and provinces.

BMO Capital Markets will act as Mainstreet’s exclusive financial advisor, while Goodmans LLP will perform as the company’s legal advisor. Cantor is the financial advisor of both Tiptree and CareIT. Morrison Foerster LLP is also acting as their legal advisor.

Mainstreet also intends to rename and re-brand itself as Invesque Inc. The name change should be effective Jan. 3rd, 2018, subject to shareholders’ approval. Mainstreet will be expanding its board of directors from five members to six, adding one Tiptree nominee.

Image courtesy of Mainstreet Health Investment