Ontario, Calif.-based Prime Healthcare has completed a $350 million acquisition of five facilities in California and New Jersey from Medical Properties Trust, one of the world's largest hospital real estate owners.
MPT initially shared the purchase plans in its 2023 fourth quarter results.
The sale consisted of $250 million in immediate cash and a $100 million interest-yielding mortgage note due in nine months to MPT, according to an April 9 news release.
Prime and MPT also agreed to a 20-year master lease for four Prime-leased hospitals with a $260 million option to purchase.
"To encourage Prime to exercise its purchase option early in the new lease term, the parties have agreed that the properties may be purchased at the $238 million lease base on or prior to August 26, 2028," the release said. "After August 26, 2028 the option price reverts to $260 million (subject to annual escalations)."