Skilled Nursing Transactions: CareTrust REIT Expands in Four States

Capital One Provides $16.3 Million Loan to Refinance PruittHealth SNF Portfolio 

Capital One announced that it provided a $16.3 million loan to PruittHealth to refinance a portfolio of three skilled nursing facilities (SNFs) and an intermediate care facility for individuals with developmental disabilities (ICF-MR) in Georgia, as well as a SNF in North Carolina.

Four properties — including Lakehaven, Holly Hill, Crestwood and Parkwood Development Center — are located in Valdosta, Ga. The fifth property, PruittHealth Durham, is located in Durham, N.C.

The Norcross, Ga.-based PruittHealth, the largest post-acute provider in the Southeast U.S., operates more than 90 skilled nursing, post-acute and assisted living facilities, according to a press release from Capital One.

California Nursing Home to Close

Eagle Crest Nursing Home in Carmichael, Calif. has decided to voluntarily close after more than three years on the Centers for Medicare and Medicaid (CMS) list of troubled facilities.

State inspectors recently determined that a female resident was sexually abused multiple times by another resident, the Sacramento Bee reports.

This summer, the California Department of Public Health recommended that federal regulators drop the facility from its Medicare provider rolls. The nursing home’s owner, Genesis HealthCare Inc. (NYSE: GEN), based in Lake Forest, Calif., responded by notifying the state that it would voluntarily close the facility in October.

The Ensign Group Acquires Arizona SNF Portfolio

The Ensign Group, Inc. (Nasdaq: ENSG) — the parent company of the Ensign group of skilled nursing, rehabilitative care services, home health care, hospice care, and assisted living companies — acquired the real estate and operations of two Arizona SNFs.

Effective September 1, Ensign owns Desert Blossom Health and Rehabilitation Center, an 88-bed facility in Mesa, Ariz., and Pueblo Springs Rehabilitation Center, a 115-bed facility in Tucson, Ariz.

The facilities had a combined occupancy rate of about 68% at the time of acquisition, according to a press release from the Ensign Group.

The acquisitions bring Ensign’s portfolio to 229 facilities, 63 of which are owned. Ensign continues to seek opportunities for new acquisitions or to lease well-performing or struggling skilled nursing businesses, the release states.

CareTrust Expands SNF Presence in Texas, Idaho, Oregon and Washington

The San Clemente, Calif.-based CareTrust REIT (Nasdaq: CTRE) announced three transactions this week, which expand its presence in Texas, Idaho, Oregon and Washington.

First, it acquired three SNFs in the greater Dallas-Fort Worth area for approximately $20.2 million. The three-facility, 405-bed portfolio is expected to generate annual cash rent of $1.9 million, and was added to CareTrust’s existing master lease with affiliates of Priority Management Group, LLC,; the firm manages other CareTrust properties in Texas.

In another transaction, the REIT acquired three SNFs in Idaho, Oregon and Washington for $11.3 million. These properties were added to CareTrust’s existing master lease with affiliates of Cascadia Healthcare, LLC.

In the third transaction, CareTrust acquired three SNFs in Idaho for $65.5 million. It’s the first stage of a seven-facility portfolio which was also added to the Cascadia master lease.

Blueprint Announces Sale of Illinois SNF

Chicago-based Blueprint Healthcare Real Estate Advisors facilitated the sale of Symphony of Crestwood, a SNF located in Crestwood, Ill., a suburb of Chicago.

The purchaser, represented by Blueprint, was a joint venture between a public REIT and a private equity investor.

Symphony of Crestwood, built in 1974, is a multi-story facility which is the largest SNF facility by licensed capacity in the area.

The transaction was handled by Blueprint senior managing director and founding partner Ben Firestone and managing director Michael Segal.

Senior Living Investment Brokerage Facilitates Sale of Texas SNF

Glen Ellyn, Ill.-based Senior Living Investment Brokerage, Inc. managed the sale of a 147-bed Texas SNF for $5.3 million.

The seller is an independent owner-operator located in the Dallas-Fort Worth area and the buyer is a real estate owner based out of the same area. The buyer will lease the property to an operator that runs other SNFs in Texas.

The facility was built in 1967 and an addition and renovations were completed in 1996.

Matthew Alley, managing director of Senior Living Investment Brokerage, led the negotiations.

Written by Elizabeth Jakaitis