CareTrust REIT has acquired a 46-facility skilled nursing and senior housing portfolio in the Midwest for $97 million.
The San Clemente, California-based real estate investment trust said in a Monday news release the facilities include more than 3,800 beds and were purchased through a bankruptcy sale of the assets from an unnamed debtor. It did not disclose the names or specific locations of the facilities.
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CareTrust said in the release it entered into a triple-net master lease — through which a tenant agrees to pay expenses such as insurance and maintenance — with an unidentified large skilled nursing investor and operator, which will sublease the properties to several licensed subtenant operators. The master lease has an initial term of 15 years, with two five-year extension options.
CareTrust said in the release the master tenant has been granted purchase options in the fourth and fifth year of the lease for each sub-portfolio.
Last week, the company closed on the acquisition of 14 Tennessee nursing homes and senior living facilities through a joint venture with nursing home and senior living facilities operator Pacs Group. At closing, CareTrust said it provided a combined investment totaling approximately $245 million. The company said it expects to complete the acquisitions of 17 other Tennessee facilities with joint venture partners the Ensign Group and Links Healthcare Group by the end of the year.
The real estate investment trust said in Monday's release the transactions in the Midwest and Tennessee bring its annual investment total over $1.3 billion.
CareTrust acquires and leases senior housing facilities in 31 states nationwide. Before Monday's announcement, the company’s portfolio included 245 skilled nursing facilities, 45 assisted living facilities and three independent living facilities.
