Murfreesboro, Tennessee — One of the largest nursing home portfolio transactions in recent memory is now officially on the books.
National Health Investors (NHI), a publicly traded real estate investment trust, announced Tuesday that it has agreed to sell 35 properties — including 32 skilled nursing facilities and 3 independent living communities — to National HealthCare Corporation (NHC) for $560 million. The deal is expected to close July 1, pending standard closing conditions.
What’s Being Sold
The 35 properties span seven states: Alabama, Florida, Kentucky, Missouri, South Carolina, Tennessee, and Virginia. Together they generated roughly $39.7 million in cash lease revenue for NHI in 2025.
NHC, which already operates the facilities under a master lease with NHI, was previously in default on that lease due to non-monetary breaches in the final quarter of 2025. The sale effectively resolves that dispute and transfers full ownership to the operator.
Why NHI Is Selling
NHI President and CEO Eric Mendelsohn framed the deal as a strategic pivot.
“This transaction accelerates our capital recycling strategy, increases our concentration in private-pay senior housing, and positions us to pursue attractive investment opportunities,” he said in a statement.
After the sale closes, skilled nursing facilities will represent just 12.2% of NHI’s total investments and 16.5% of its annualized net operating income — down sharply from current levels. The company’s Senior Housing Operating Portfolio will grow to roughly 22% of total investments.
In short, NHI is moving away from skilled nursing and toward private-pay senior housing. That’s a shift that reflects ongoing industry pressure, including the scrutiny REIT ownership of nursing homes has faced from federal investigators and policymakers.
NHC Doubles Down
For NHC, the acquisition is a major expansion. The company currently operates 80 SNFs and 26 assisted living communities, along with home care and hospice lines. Adding 32 more SNFs in a single transaction is a substantial bet on the skilled nursing sector.
Both companies are based in Murfreesboro, Tennessee, and the transaction appears to transition long-term responsibility squarely to the operating side of the equation — which advocates for greater accountability in nursing home ownership have long argued is where it belongs.
What This Means for the Sector
The $560 million deal is one of the biggest skilled nursing transactions of the year, coming just weeks after data showed M&A activity in the sector surged 36% in the first quarter of 2026. Whether NHC’s consolidation improves care outcomes at these facilities — or simply reshuffles ownership under a different corporate umbrella — remains to be seen.
NHI’s exit from skilled nursing is a signal that at least some investors see more upside elsewhere. For operators, regulators, and residents in those seven states, the July handover will be a date worth watching.
