CareTrust Grows in Silicon Valley; SLIB Arranges Three Skilled Nursing Deals

CareTrust Picks Up Former Non-Profit

CareTrust REIT (Nasdaq: CTRE) last week announced the purchase of the Villas at Saratoga, a senior living community with 85 skilled nursing beds and 37 assisted living units in Saratoga, Calif. — a city to the southwest of San Jose.

CareTrust will invest about $19 million in the property, including the acquisition costs, and expects $3.4 million in cash rent over the first two years of the 15-year lease. CareTrust will also provide $1.4 million in capital expenditures over the next two years.

The property was formerly known as Our Lady of Fatima Village, owned and operated by the Catholic non-profit Our Lady of Fatima, Inc. Affiliates of Kalesta Healthcare LLC, a Los Gatos, Calif.-based operator, will run the facility for CareTrust.

“Our longstanding relationships with Kalesta’s principals date back to our operating days,” CareTrust chief investment officer Mark Lamb said in a statement announcing the deal. “We are excited to see them continue and grow the Villas’ legacy as one of the premier skilled, transitional, and senior care facilities in Silicon Valley.”

SLIB Closes Three Deals 

The Glen Ellyn, Ill.-based Senior Living Investment Brokerage, Inc. (SLIB) announced a trio of skilled nursing closings last week, all arranged by managing director Ryan Saul.

The 82-bed Pristine Senior Living and Post-Acute Care of Fremont, Ohio sold for $2 million at the end of August, with a private New Jersey-based operator taking over for the government of Sandusky County. Occupancy sat at 56% when the facility, built in 1965, was first offered for sale, though resident uncertainty surrounding the transaction drove it down further to 50%.

The new operator has 11 other properties in the state, and plans to invest in capital improvements, according to SLIB.

The formerly non-profit Presence Pine View Care Center in St. Charles, Ill., changed hands for $5.5 million as the retired private owners elected to sell for estate-planning purposes. The new owners, a private company with other holdings in the greater Chicago area, also intends to invest heavily in the 120-bed building’s physical plant.

Presence Pine View Care Center was built in 1978, and had a 58% occupancy rate when the sale closed on August 31.

Finally, SLIB orchestrated the sale of Sanctuary at the Shore, a 126-bed SNF in Grand Haven, Mich. for $6.7 million. Non-profit owner Trinity Health elected to sell the facility in order to concentrate on its core SNFs near its hospital locations; buyers Madison Healthcare and Prestige Healthcare Management have communities in Michigan as well as Kentucky, Ohio, Pennsylvania, and Massachusetts.

Occupancy at Sanctuary at the Shore was 80% at the time of the sale.

Written by Alex Spanko