AdCare to Purchase Florida Facility for $4.8M

AdCare Health Systems, Inc. (NYSE MKT:

) today announced it has signed a letter of intent to purchase a skilled nursing facility with 55 operational beds in Florida for approximately $4.8 million, net of reserves. The proposed transaction signals AdCare's entrance into the Florida market, and represents the first acquisition since the Company's transition to a healthcare property holding and leasing company. The Company also has also executed a letter of intent with one of its existing operators to lease the facility upon purchase. The terms of the long-term lease agreement are expected to include a 15-year term with initial annual cash rent of $420,000 in the first year, and a 3% annual escalator. "This agreement to purchase a Tampa Bay area facility represents the first of what we expect will be several transactions that expand and further diversify our portfolio of properties," commented Bill McBride, AdCare's Chairman and Chief Executive Officer. "With