CareTrust Buys Campus for $9M; New Owner on Deck for SNF in Receivership

CareTrust REIT (Nasdaq: CTRE) on Tuesday announced the $9 million acquisition of the Oakview skilled nursing and supportive living campus in Mt. Carmel, Ill.

The community features 90 skilled nursing beds and 38 supportive living facility beds, according to a deal announcement from the San Clemente, Calif.-based real estate investment trust (REIT).

CareTrust will install WLC Firm, a Harrisburg, Ill.-based provider, as the new operator at the facility; prior to the Oakview transaction, the REIT and WLC had an existing seven-property master lease.

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“Oakview is a well-run, four-star facility and a newer-vintage assisted living facility that have together earned an outstanding reputation in Mt. Carmel,” WLC owner and CEO Scott Stout said in a statement. “It’s a great addition to our existing family of facilities.”

WLC will pay $853,000 for the first year of a newly renegotiated master lease, which includes annual escalators and a pair of five-year renewal options on top of the initial 15-year term.

“WLC’s hands-on approach, knowledge of its markets, and reputation for quality care has enabled them, in a relatively short amount of time, to markedly improve performance in each of their seven facilities in our portfolio,” CareTrust chief operating officer Dave Sedgwick said in a statement.

Home in Receivership Gets New Owner

The Grosvenor Park Health Center in Salem, Mass., is scheduled to be sold to the Norwood, Mass.-based Pointe Group, The Salem News reported. Pointe was the winning bidder in an auction for the home, which has been operating under court receivership.

The sale depends on the Massachusetts Department of Public Health, which would grant the facility a license. A spokeswoman for the department told the publication that the agency is reviewing the proposed owner’s suitability and would decide whether to grant the license in April.

Grosvenor Park was owned since 2015 by Synergy Health Centers, a New Jersey-based company that had eight of its 10 nursing homes in Massachusetts placed into court receivership, the Salem News reported.

The facility is currently being managed by KCP Advisory Group, which has served as court receiver since July 2018.

Missouri Hospital Opens LTC Facility

Citizens Memorial Hospital opened the 90-bed Lake Stockton Healthcare Facility, a long-term care and rehabilitation facility in Stockton, Mo., on January 26, the Cedar County Republican reported.

The facility has been approved by Medicare and is waiting on a final inspection before moving residents from the hospital’s existing long-term care building, Donald Babb, chief executive officer of Citizens Memorial Hospital and executive director of Citizens Memorial Healthcare Foundation, told the publication.

The $8.5 million facility was funded through a loan from the U.S. Department of Agriculture.

Alex Spanko contributed to this report.

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