AdCare Health Systems, Inc., a self-managed healthcare real estate investment company that invests primarily in real estate purposed for senior living and long-term healthcare, announced it completed the purchase of an assisted living and memory care facility with 106 operational beds located in Alabama for $5.5 million on May 1, 2017.

The Company also announced the commencement of a long-term lease to operate the facility to an affiliate of C.Ross Management, LLC. C.Ross, AdCare's largest operator, operates 22 facilities in Georgia and Alabama through its affiliates. The terms of the long-term lease agreement, include a 13-year term with initial annual cash rent of $450,000 in the first year and a 2% annual rent escalator.

Allan Rimland, AdCare's President and Chief Executive Officer, commented, "The purchase of this facility provided us with the opportunity to deploy cash at an attractive return on capital and expands our presence in Alabama. In addition, an affiliate of C.Ross Management operates the adjacent Coosa Valley skilled nursing facility, thereby providing opportunities for operational improvements at each of the properties. Most importantly, this facility represents the first acquisition by the company after the transition of the company from an owner, operator and manager of senior housing facilities to a property holding and leasing company."

The company financed the acquisition with conventional mortgage debt of $4.1 million with a term of five years bearing an interest rate of 4.50% per annum and cash on hand of $1.4 million.