Nationwide Health Properties’ Tenant Defaults

Nationwide Health Properties Inc. said Friday that it has declared a large tenant in default on two master leases and has seized more than $2 million in security deposits to make up for the reduced rentals it has received. The Newport Beach real estate investment trust, which specializes in health-care facilities, said it took the action after Balanced Care Corp. gave notice that it could make only a partial rent payment this month. The Mechanicsburg, Pa., senior-care company leases 10 assisted-living facilities in six states from Nationwide for a total monthly rent of $580,000. The units amount to 4% of Nationwide’s portfolio. Nationwide said operating results at the 10 facilities can cover only 40% of the rent. The company said it will meet with Balanced Care executives Wednesday to determine a course of action.