MedEquities Realty Trust Inc. (NYSE: MRT) of Nashville announced Nov. 10 it has signed a new, 15-year triple net lease with Creative Solutions in Healthcare a regional skilled nursing and assisted living facility operator based in Fort Worth, for all 10 of the company’s locations currently leased to affiliates of OnPointe.
Creative Solutions will begin operating the facilities upon receipt of all outstanding regulatory approvals, which is expected to be on or about Jan. 1, 2019, at which time the new lease will commence. Initial annual base rent under the lease will be $7.7 million with annual lease escalators of 2 percent and two, five-year tenant renewal options. The lease is guaranteed by Creative Solutions’ management company along with personal guarantees from its two co-founders.
Founded in 2000, Creative Solutions has a track record in the long-term care industry and currently operates 55 skilled nursing facilities and seven assisted living facilities, all of which are located in Texas.
John McRoberts, chairman and CEO of MedEquities Realty Trust, said in a statement: “We are pleased to announce this agreement to re-tenant our Texas Ten Portfolio with a proven operator like Creative Solutions in Healthcare. We worked closely with a number of interested operators and narrowed our focus to Creative based on their scale and experience in Texas, strong operating history, solid financial and operating metrics and a reputation for quality.”
Gary and Malisa Blake co-founded Creative Solutions in Healthcare in 2000 when they opened their first care facility; Granbury Care Center.