Compass Healthcare Buys Minn. SNF for $23.75M; CareTrust REIT Grows in Georgia with New Tenant, $12.1M Investment

Compass Healthcare, which rebranded the center as Lakehouse Healthcare and Rehabilitation Center, paid $23.75 million for a Walker Methodist skilled nursing facility in south Minneapolis, a 39-year-old facility.

Walker Methodist owns and operates 18 senior living communities in Minnesota and Wisconsin. The company also closed three sales in 2022, including $4.5 million for Vista Prairie Communities, a 60-unit senior assisted-living and memory-care community.

“As we looked at the upcoming capital investments needed for each property, it made sense to partner with a new ownership group who can leverage different types of financing to ensure that these affordable housing communities can have important upgrades in the years to come,” Walker Methodist chief financial officer Russ Grundhauser said in a press release.


CareTrust REIT Grows in Georgia with New Operator Relationship

CareTrust has entered into a new tenant relationship with Elevation Group, LLC, a Florida-based skilled nursing operator.

Elevation entered into a 15-year triple net lease with CareTrust that includes two, 5-year extension options and annual CPI-based rent escalators.


“We are tremendously excited that this acquisition begins CareTrust’s relationship with Elevation Group. Ken and Dan Funk are experienced operators with a commitment to care that we have long admired,” James Callister, CareTrust’s Chief Investment Officer, said in a statement.

CareTrust’s initial investment in the facility, inclusive of transaction costs, was approximately $12.1 million. The facility is scheduled to generate first-year annual cash rent of $1,170,000. The acquisition was funded using proceeds from the Company’s $600 million unsecured revolving credit facility.

“Acquiring another facility in Georgia and the addition of a new operator relationship is consistent with CareTrust’s continued focus of adding quality operators, growing our footprint in attractive markets, and in matching great operators with great opportunities where our access to capital and low execution risk make us attractive buyers,” Callister said.

Curana Health and Serviam Partner for Value-Based Care Initiative

Curana Health, a provider of clinical care through value-based programs that benefit residents and senior living organizations, and Serviam, a coalition of senior living operators, announced a partnership to provide senior living organizations with the infrastructure and tools needed to improve onsite care for residents and advance value-based care in their communities.

“In the next decade, senior living will move to a value-based care system, and facility operators will need access to the right technology, service providers, and revenue streams to embrace and succeed under this care delivery model,” said Chris Dawe, President of Curana Health Medical Group in a press release. “Our partnership with Serviam not only makes it easier for senior living communities to embrace value-based care, but more importantly to deliver for their residents, by giving them access to the tools and infrastructure that can improve health outcomes, efficiency, and ultimately the bottom line.”

As part of the partnership, Curana Health and Serviam have created a Value Based Care Alliance which provides the infrastructure, services, and scale that operators need to effectively participate and succeed in value-based care. According to the companies, with Curana’s investment in Serviam, Dawe will also join the Serviam Board of Directors and help steer the organization’s value-based care approach to aging and senior living.

“There’s a higher path available for America’s seniors, and that path is value-based care,” said Tim Donnelly, CEO of Serviam Care Network. “We are stuck in a reactionary, sick-care system. Our seniors deserve better. The value-based care health model will help seniors maintain the highest possible level of wellness, instead of waiting until they get sick to provide care, which is often more complex and expensive.”

SLIB facilitates sale of Crestview Manor Nursing Home in Jane Lew, West Virginia

SLIB facilitated the sale of Crestview Manor Nursing Home in Jane Lew, West Virginia. Crestview Manor is a 72 bed Skilled Nursing Facility which has been family owned since 1987.

According to SLIB, the community has maintained a strong reputation in its community over the years and is the only Skilled Nursing Facility in the county. The community has been well operated and has historically maintained high occupancy levels.

The Seller was a private out of state owner who owned Crestview Manor for over three decades. The buyer is a publicly traded REIT utilizing an existing operating partner relationship who has collectively rapidly grown their presence throughout West Virginia.

“SLIB was able to procure double digit formal offers quickly and confidently from a very selective pool of qualified buyers. SLIB collaborated with the seller to identify a buyer that met their criteria of who they sought to sell to after three decades of

Ownership,” Dave Balow, SLIB Senior Vice President, said in a statement.

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