SNF Transactions: CareTrust Buys Three Facilities in Southern CA

CareTrust REIT Acquires Three SNFs in Southern CA

CareTrust REIT (Nasdaq: CTRE) acquired three skilled nursing facilities and provided mortgage financing for a fourth in Southern California. The San Clemente, Calif.-based real estate investment trust entered a new tenant relationship with affiliates of Providence Group in connection with the deal.

The total investment for the three-facility, 528-bed portfolio was about $69 million including transaction costs. CareTrust expects to yield approximately $6.1 million in initial annual cash rent. For the fourth SNF, a 104-bed property, the mortgage was $12.5 million inclusive of transaction costs, at a 9% annual interest income.


The master lease has an initial term of 15 years, two five-year renewal options, and CPI-based rent escalators. CareTrust REIT’s $400 million unsecured revolving credit facility funded the acquisition.

North Carolina Hospital with SNF Unit Receives Multiple Bids

Seven prospective buyers, including three medical service companies and two North Carolina hospitals, submitted bids for all or portions of Morehead Memorial Hospital in Eden, N.C., according to Rockingham Now. The hospital is in the middle of a Chapter 11 bankruptcy case that was filed in July due to a “significant amount of debt” — close to $60 million.


The operation includes a 121-bed skilled nursing center, a 108-bed acute-care hospital, and multiple medical office buildings.

Wilmington, N.C.-based Liberty Health Care Management — which provides rehabilitation, skilled nursing, assisted living, and outpatient services at more than 20 facilities in the state — was one of the medical providers that submitted a bid.

Radiant Healthcare Group, which is privately owned and based in Nyack, N.Y., also submitted a bid.

DarrowEverett, Jeffrey Zwick Guide $48M Nursing Home Loan

DarrowEverett LLP, a Providence, R.I.-based law firm, represented Andrews Federal Credit Union on an approximately $48.3 million loan to a nursing and rehabilitation property in Brooklyn.

The loan includes $13.5 million in new financing, with the remainder consisting of refinancing, for the Crown Heights Center for Nursing and Rehabilitation, according to Law360.

The center specializes in short-term, post-acute rehabilitation and skilled nursing, in addition to long-term residential care. The facility is operated by the Allure Group.

Written by Maggie Flynn

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