ABERDEEN, S.D. — CareTrust REIT Inc. (NASDAQ: CTRE) has acquired a 99-bed skilled nursing facility in Aberdeen for $9.7 million.
Formerly operated by an affiliate of HCR ManorCare, CareTrust has added the property to its master lease with Salt Lake City-based Eduro Healthcare. The new operator has renamed the facility Prairie Heights Healthcare Center.
The acquisition represents the third time this year that CareTrust and Eduro have expanded their master lease relationship. It is also the first foray into South Dakota for both companies.
The initial increase in annual cash rent increase under Eduro's amended master lease will be approximately $870,000. The Eduro master lease has approximately twelve years remaining on the initial term, and carries CPI-based annual escalators.
CareTrust funded the acquisition using cash on hand.