Mainstreet Health Investments, a healthcare real estate company, signed definitive agreements with diversified holding company Tiptree and certain subsidiaries to acquire real estate investment company Care Investment Trust for approximately $425 million.
Under the transaction, which must still clear various regulatory hurdles, Mainstreet would own CareIT's portfolio of 35 independent living, assisted living and memory care properties and seven skilled nursing facilities across 11 states, officials said via news release.
The 42 seniors housing and care properties altogether comprise 3,718 suites/beds. This means Mainstreet's investment platform will include eight new states and comprise 80 properties with 8,536 suites/beds across America and Canada if the transaction is completed, according to officials.
Officials said Tiptree would also be Mainstreet's largest shareholder under the transaction, and Mainstreet would decrease the concentration of its largest operator Symphony by 24 percent.
Assuming things go as planned, the transaction is expected to close in the first quarter of next year.
"We believe this transaction and the addition of Tiptree as another cornerstone investor will bolster our position in the market and position Mainstreet for the next phase of its growth. This transaction is further evidence of the embedded value in our platform, with a sophisticated investor making a significant investment in our company," Mainstreet CEO Scott White stated.
On the heels of the transaction news, Mainstreet has also announced plans to rebrand as Invesque, saying it "will complement the company's growth strategy, while establishing a unique identity to avoid confusion with other companies with similar names."
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