MedEquities Realty Trust Acquires Woodlake Skilled Nursing Facility

MedEquities Realty Trust said late Thursday it has agreed to acquire Tolland, Connecticut-based skilled nursing facility Woodlake at Tolland Nursing & Rehabilitation Center from a wholly-owned unit of Prospect Medical Holdings for $10 million in cash.

The acquisition is slated to close within 60 days, subject to certain closing conditions and Connecticut regulatory approval. MedEquities also said it will lease the facility to Prospect ECHN Eldercare Services under a 12-year triple-net lease at an initial rate of 9% with annual escalators. The company added that Prospect Medical and Prospect ECHN will provide a guaranty for the lease.

By Chris Robinson