CareTrust REIT Buys 464-Bed Skilled Nursing Portfolio in Michigan for $41.5M

Metron Cedar Springs Metron Cedar Springs

GRAND RAPIDS, Mich. — CareTrust REIT Inc. (NASDAQ:CTRE) has acquired a 464-bed, five-property skilled nursing portfolio in the Grand Rapids metro area for $41.5 million.

The transaction is a sale-leaseback with the portfolio’s longtime owner-operator, Metron Integrated Health Systems, based in Grand Rapids. Metron sought to recapitalize the company with plans for future growth.

The initial annual cash rent from the portfolio will be approximately $3.7 million, with annual CPI-based rent escalators. The lease term is 15 years, plus two five-year renewal options. CareTrust funded the acquisition using a combination of cash on hand and the company’s $400 million unsecured revolving credit facility.

Evans Senior Investments represented Metron in the transaction. The portfolio was 84 percent occupied at the time of sale.

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