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EX-99.1 - Sentio Healthcare Properties Inc | v206214_ex99-1.htm |
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of
the
Securities Exchange Act of 1934
Date of
Report (Date of earliest event reported):
December
16, 2010
CORNERSTONE
HEALTHCARE PLUS REIT, INC.
(Exact
name of registrant as specified in its charter)
Maryland
|
000-53969
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20-5721212
|
(State or Other Jurisdiction of Incorporation)
|
(Commission
File Number)
|
(I.R.S.
Employer Identification Number)
|
1920
Main Street, Suite 400
Irvine,
California 92614
(Address
of principal executive offices)
(949)
852-1007
(Registrant’s
telephone number, including area code)
Not
Applicable
(Former
name or former address, if changed since last report)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligations of the registrant under any of the following
provisions.
¨
|
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
|
¨
|
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14d-2(b)
|
¨
|
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b)
|
¨
|
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c)
|
ITEM
8.01
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OTHER
INFORMATION
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Joint
Venture to Develop a Specialty Rehabilitation Facility
General
On
December 16, 2010, through a wholly-owned subsidiary, Cornerstone Healthcare
Plus REIT, Inc. (the “Company”) funded an investment in a joint venture with
affiliates of The Cirrus Group, an unaffiliated entity, to develop a $7.3
million Specialty Rehabilitation Facility (the “Facility”) in Littleton,
CO.
Joint
Venture Parties and Structure
The
Company agreed to contribute approximately $1.6 million of capital to acquire a
90% limited partnership interest in Littleton Med Partners, LP. Three
affiliates of The Cirrus Group contributed an aggregate of approximately $0.2
million to acquire an aggregate 9.5% limited partnership interest in the
Littleton Med Partners, LP. A fourth affiliate of the Cirrus Group
acts as the general partner and holds the remaining 0.5% interest in the
Littleton Med Partners, LP. The Company’s equity investment in the joint
venture was funded from proceeds from its ongoing initial public
offering.
The Development
Project
The
aggregate budgeted development cost for the proposed development of the
specialty rehabilitation facility is approximately $7.3 million. The
development cost will be funded with approximately $1.8 million of initial
capital from Littleton Med Partners, LP and a $5.5 million construction
loan.
The
Facility is planned to comprise approximately 26,808 square feet with 36 beds,
all of which will be triple-net leased to CareMeridian, LLC, an experienced
operator of post-acute inpatient rehabilitation facilities for 15
years. CareMeridian is a provider of subacute and skilled nursing for
patients suffering from traumatic brain injuries, spinal cord injury or
medically complex injuries. CareMeridian currently operates 16 facilities
located in California, Arizona and Nevada. The Facility will be located in
Littleton, CO, a suburb 9 miles southwest of Denver and situated in close
proximity to eight hospitals with acute care services. There are no direct
competitors to the Facility within the surrounding area of the new development
project.
In
evaluating this development as a potential investment and determining the
appropriate amount of consideration to be paid for this investment, we
considered a variety of factors including overall valuation of targeted net
rental income, location, demographics, existing and planned competitive
properties and price per square foot and analyzed how the investment compares to
comparables in its market
ITEM 9.01
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FINANCIAL
STATEMENTS AND EXHIBITS.
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(d)
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Exhibits
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99.1
|
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Press
Release dated December 22, 2010
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2
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, as amended, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CORNERSTONE
HEALTHCARE PLUS REIT, INC.
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Dated: December
22, 2010
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By:
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/s/ Sharon C. Kaiser
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Sharon
C. Kaiser,
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Chief
Financial Officer
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3