ATLANTA, Feb. 16, 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 has signed a letter of intent to
purchase an assisted living facility with 106 operational beds
located in Alabama for
$5.5 million.
The Company also announced it has executed a letter of intent
with an affiliate of C.Ross Management, LLC to lease the facility
upon purchase. C.Ross, AdCare's largest tenant, operates 21
facilities in Georgia and
Alabama. The terms of the
long-term lease agreement are expected to include a 13-year term
with initial annual cash rent of $450,000 in the first year and a 2% annual rent
escalator.
Bill McBride, AdCare's Chairman
and Chief Executive Officer, commented, "The purchase of this
facility at an attractive valuation provides us with the
opportunity to deploy cash in a manner that is accretive to
shareholders and expands our presence in Alabama. Furthermore, we are teaming up with
our largest operator, C.Ross Management who operates seven of our
facilities, including two facilities in Alabama."
The company intends to finance the acquisition with conventional
mortgage debt and cash on hand. The purchase is expected to close
in the second quarter of 2017. The purchase of the facility and the
lease to an affiliate of C.R. Management is subject to, among other
things, satisfactory due diligence, debt financing and the
negotiation and execution of a definitive purchase agreement and
lease agreement, each of which will contain customary
representations, warranties, covenants and closing conditions.
There is no assurance that this transaction will be completed on
the terms described in this press release or that they will be
completed at all.
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 29 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, 2015, 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.