CareTrust Expands into South Dakota with Acquisition of Former ManorCare SNF
CareTrust REIT, Inc. (Nasdaq: CTRE) acquired a 99-bed skilled nursing facility in Aberdeen, S.D., and added the property to its existing master lease with Salt Lake City-based Eduro Healthcare, LLC.
The facility, now known as Prairie Heights Healthcare Center, was formerly operated by an affiliate of HCR ManorCare. Eduro took over operations on Wednesday.
The total investment was approximately $9.7 million, inclusive of transaction costs, which CareTrust funded with cash on hand.
Under Eduro’s amended master lease, the initial increase in annual cash rent will be approximately $870,000. The lease has approximately 12 years remaining on the initial term and carries Consumer Price Index-based annual escalators.
Michael Bewsey, Eduro’s managing director, noted in a statement announcing the deal that the greater Aberdeen health care community has two acute care hospitals, as well as other health care providers and insurers.
“We look forward to truly partnering with each of them, and will work hard to deserve their continued trust as we care for their post-acute and long-term patients,” he said.
The deal is the first entry into South Dakota for both companies, and the third time this year that CareTrust and Eduro expanded their master lease relationship. Bewsey indicated that Eduro sees the upper Midwest, where the operator now has two facilities, as “a strategic growth target.”
Written by Maggie Flynn