SAN CLEMENTE, Calif. — CareTrust REIT Inc. (NASDAQ: CTRE) has agreed to acquire 13 skilled nursing facilities in three separate transactions for a total purchase price of $97 million. The properties are located in Idaho, Texas, Oregon and Washington.
In the first transaction, CareTrust has acquired three skilled nursing facilities in Idaho as part of a staged, seven-facility portfolio transaction. When completed, the full portfolio price will be $65.5 million, which CareTrust funded with cash on hand and its $400 million unsecured revolving credit facility. The full transaction is scheduled for completion by the end of the year.
The seven properties, which total 571 beds, will all be added to CareTrust’s master lease with Cascadia Healthcare LLC. CareTrust forecasts an annual cash rent of approximately $5.9 million from the portfolio.
In the second transaction, CareTrust acquired Wellspring Health and Rehabilitation of Cascadia, a 53-bed skilled nursing facility in Nampa, Idaho; Secora Health and Rehabilitation of Cascadia, a 120-bed skilled nursing facility in Portland, Ore.; and Brookfield Health and Rehabilitation of Cascadia, an 83-bed skilled nursing facility in Battle Ground, Wash.
CareTrust bought the properties for $11.3 million and added all three to the same master lease with Cascadia Healthcare. CareTrust expects an annual cash rent of $1.1 million from the three facilities. Ben Firestone and Mike Segal of Blueprint Healthcare Real Estate Advisors brokered the transaction on behalf of the sellers, a publicly traded REIT and a Tennessee-based operator looking to exit the Pacific Northwest.
The Cascadia master lease has a remaining initial term of approximately 13.5 years, with two five-year renewal options and CPI-based rent escalators.
In the final transaction, CareTrust acquired three skilled nursing facilities totaling 405 beds in the Dallas-Fort Worth Metroplex. The purchase price was $20.2 million.
The facilities were added to CareTrust’s master lease with affiliates of Priority Management Group. CareTrust predicts an annual cash rent of $1.9 million from the three properties.
The amended PMG master lease has a remaining initial term of approximately 14 years, with two five-year renewal options and CPI-based rent escalators.
CareTrust REIT is a publicly traded real estate investment trust that owns, acquires and leases seniors housing and healthcare-related properties.