CareTrust Buys $10M SNF in Texas; Rehab Hospital Breaks Ground in Arizona

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.

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“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.

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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.

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