CareTrust REIT Inc. (Nasdaq: CTRE) acquired the 118-bed Lakewest Rehabilitation & Skilled Care skilled nursing facility in Dallas, for an initial investment of $10 million, inclusive of transaction costs.
The San Clemente, Calif.-based real estate investment trust (REIT) leased the property to Texas SNF operator Next Gen P, LLC, with initial annual cash rent set at approximately $900,000. The Next Gen master lease has an initial term of 15 years, with two five-year renewal options and Consumer Price Index-based rent escalators.
The deal marks the first transaction between CareTrust and Next Gen.
“We have long admired Next Gen and its principals, and are elated to finally kick off our formal association with them,” Mark Lamb, the REIT’s chief investment officer, said in a statement. “They fit CareTrust’s outcomes-based quality operator profile extremely well, and we anticipate that they will be a great partner and a growing relationship for us,” he added.
The property itself falls under a long-term ground lease in favor of the Dallas Housing Authority; the deal itself was funded using cash on hand.
CareTrust now has 212 leased health care properties across the country, along with three operated senior housing communities.
Oxford Finance Provides Loan and Line of Credit for SNF Acquisition in Maryland
Oxford Finance LLC closed a term loan and revolving line of credit to the Maryland-based skilled nursing operator Sterling Senior Care.
The funds were used to acquire a 129-bed SNF in Belcamp, Md.
Sterling Senior Care operates SNFs and assisted living facilities in the Mid-Atlantic region.
56-Bed Rehab Hospital Breaks Ground in Peoria, Arizona
Banner Health and Select Medical held a groundbreaking ceremony for a 56-bed rehabilitation hospital in Peoria, Ariz., the Your Valley news site reported. The project is a joint venture between Banner, a non-profit health system based in Phoenix, and Select Medical, which owns long-term acute care and inpatient rehab hospitals, among other types of clinics.
The facility is expected to open in the summer of next year.