Signature Healthcare Services, LLC, which operates the Aurora Behavioral Health Care brand, has entered into a real estate investment trust (REIT) deal with Care Capital Properties, Inc., for six of its behavioral health facilities. The sale-leaseback transaction is valued at $400 million with up to $50 million in additional capital expenditures available to finance expansion and improvements.
Signature owns and operates acute psychiatric hospitals and behavioral health programs in multiple states, and the REIT deal will include properties located in California, Arizona and Illinois, representing a total of 712 beds. According to the announcement, all six properties either have recently expanded or are currently in planning to increase bed capacity.
The transaction is expected to close in the second quarter of 2017, and Care Capital Properties will lease the properties to affiliates of Signature on a 10-year triple-net basis, with five renewals of five years each.