Aurora Behavioral Health Care San Diego is among six psychiatric hospitals being acquired by Care Capital Properties Inc. in a $400 million deal, the Chicago-based investment company announced.
Officials said Care Capital has entered into an agreement to buy and lease back the behavioral health hospitals, totaling 712 beds in California, Arizona and Illinois, to affiliates of the seller, Signature Healthcare Services LLC of Corona. They will be leased by Signature for 10 years, with options for future renewals.
The facilities provide acute inpatient and outpatient psychiatric care, addiction services, and psychiatric care for geriatric, child and adolescent patients. All six properties have been either recently expanded or have plans in the works to expand patient capacity, with Care Capital planning to fund up to $50 million in capital improvements.
The 80-bed Aurora San Diego facility is at 11878 Avenue of Industry in Carmel Mountain Ranch. The deal’s other Aurora properties are in Covina, Ventura, Chicago, and Tempe and Glendale in Arizona.
Care Capital Properties Inc. (NYSE: CCP) is a health care real estate investment trust. In a statement, CEO Raymond Lewis said the transaction will enable the company to diversify its portfolio into a new industry sector “with a strategic operator, favorable investment attributes and strong cash flows.”