CareTrust REIT, Inc. Acquires Three Property Skilled Nursing Portfolio in Texas and Missouri
March 06, 2024 at 06:01 am EST
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CareTrust REIT, Inc. announced the acquisition of three skilled nursing facilities for approximately $55.6 million, inclusive of transaction costs. The portfolio, consisting of 210 skilled nursing beds and 24 assisted living units, will be added to CareTrust?s existing master lease with affiliates of PACS Group, Inc., who has been operating the facilities for a third-party landlord. Two of the facilities are located in Houston, Texas and one is located in Columbia, Missouri. The acquisition adds three facilities to CareTrust?s relationship with PACS and increases annual rent under the existing master lease by approximately $5,002,000. As part of the transaction, the tenant will have an option
to purchase two of the facilities following the fourth anniversary of the closing. The deal brings the total number of beds/units under the CareTrust/PACS relationship to over 1,200. The transaction was funded with cash on hand.
CareTrust REIT, Inc. is a self-administered, real estate investment trust (REIT). The Company is engaged in the ownership, acquisition, development and leasing of skilled nursing, seniors housing and other healthcare-related properties. The Company owns, directly or through joint ventures, and leased to independent operators, 232 skilled nursing facilities (SNFs), multi-service campuses, assisted living facilities (ALFs) and independent living facilities (ILFs) consisting of approximately 25,128 operational beds and units located in 28 states with the highest concentration of properties by rental income located in California and Texas. It leases healthcare-related properties to healthcare operators in triple-net lease arrangements. The Company extends secured mortgage loans to healthcare operators, secured by healthcare-related properties and secured mezzanine loans to healthcare operators, secured by membership interests in healthcare-related properties.