CareTrust Picks Up Southern California Nursing Facility for $15.9M; Eastern Union’s $57M Bridge Financing

CareTrust REIT (Nasdaq: CTRE) acquired the Buena Vista Care Center, a 150-bed skilled nursing facility in Santa Barbara, Calif., for about $15.9 million, including transaction costs, the real estate investment trust announced March 9.

The facility will continue to be operated by Covenant Care under a long-term lease assumed by the San Clemente, Calif.-based CareTrust in the off-market deal. The operator has about four years left on its existing lease term, with two five-year renewal options; the lease currently carries about $1.5 million in annual cash rent with 3.0% annual escalators, according to a press release announcing the transaction.

The SNF is located close to the Goleta Valley Cottage Hospital and has a market reach well beyond the greater Santa Barbara area, CareTrust chief investment officer Mark Lamb said in the release.


“Not only is Buena Vista a special property, the icing on the cake is the opportunity to add an eighth facility to our existing relationship with Covenant Care,” he said in the release.

The acquisition was funded through CareTrust’s $600 million unsecured revolving credit facility.

Eastern Union’s $57M Bridge Financing For SNFs in Florida and Massachusetts

Eastern Union’s health care group secured a $57 million bridge financing package for two skilled-care facilities in Florida and two in Massachusetts, with a total of 544 beds.


The two facilities in Florida — a 133-bed facility in Naples that provides skilled nursing and assisted living, and a 146-bed facility providing assisted living, memory care, and skilled nursing in Venice — accounted for $26 million of the overall transaction.

Eastern Union president Ira Zlotowitz and capital markets specialist Michael Wyne worked on both Florida transactions.

The remaining $31 million in the transaction consisted of the recapitalization of a 123-bed SNF in Salem and a 142-bed SNF in Wilmington, both in Massachusetts.

The overall financing package, according to the press release, covers a three-year term and was secured on a limited recourse basis at an 85% loan-to-value ratio, with interest-only payback for the first 24 months.

“Eastern Union was able to get the lender comfortable with a high loan-to-value ratio and with the value-added nature of the deal,” Eastern Union senior vice president Jacob Schonland said in the press release announcing the transaction.

Consulate SNF Sells to Omega Affiliate for $17.51M

REI Jacksonville LLC sold the Consulate Healthcare of Jacksonville facility to an affiliate of the REIT Omega Healthcare Investors (NYSE: OHI) for $17.51 million on February 25, with the deed recorded March 1, Jacksonville Business Journal reported March 3.

The eight-story SNF has 116 beds with 12 private rooms and 52 semi-private rooms according, to Consulate’s website as cited by the publication.

The property was last appraised at $4.28 million, with the facility valued at $3.12 million; it was purchased by REI Jacksonville in 2002 from Jacksonville Care LLC for $5.1 million, Jacksonville Business Journal reported.

Blueprint Facilitates Sale of SNF to Private Equity Owner-Operator

Blueprint Healthcare Real Estate Advisors facilitated the sale of a 108-bed SNF in Dayton, Ohio, on behalf of a non-profit seller seeking an exit strategy. The facility, which was built in 1975 and had struggled with survey issues and financial insolvency, was sold to a private equity owner-operator.

The fair-market value of the facility was less than the Department of Housing and Urban Development (HUD) loan obligations, Blueprint noted.

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