CareTrust REIT Inc. (NYSE: CTRE), along with a regional investor in healthcare real estate, acquired four skilled nursing facilities on the West Coast.
The four-property acquisition includes 450 skilled nursing beds and 20 assisted living units.
Links Healthcare Group, a new operator relationship for CareTrust, will operate the facilities pursuant to a 15-year master lease with two five-year extension options. Links currently operates 16 skilled nursing and seniors housing communities.
CareTrust’s initial investment in the facilities, inclusive of transaction costs, was $71.5 million, funded using proceeds from San Clemente-based CareTrusts $600 million unsecured revolving credit facility.
“We are excited to begin our relationship with CareTrust and to continue the legacy of high-quality care and operations the seller has provided over the years,” Links Healthcare Group Co-Founder Curt Rodriguez said. “The Links and CareTrust teams have worked extremely well together throughout this process and we are confident that this will continue to be a successful, collaborative relationship.”
LTC Properties, Inc. Invests $61.5 Million in Ohio
LTC Properties invested a total of $61.5 million in two transactions, and completed a previously disclosed transition of a portfolio of eight assisted living communities to an existing LTC operator in Ohio.
The investments include LTC’s $45.0 million investment in a $54.1 million joint venture acquisition of a seniors housing campus, and a $16.5 million investment in a skilled nursing center.
“LTC has been very active this year, investing more than $240 million year-to-date, our largest investment year since 2015, and transitioning challenged properties to strengthen our portfolio,” said Wendy Simpson, LTC’s chairman and CEO, in a press release. “Making incremental investments with existing partners allows us to work with growth-minded operators who we know and respect, while investing in newer assets allows us to further reduce the average age of our portfolio. These efforts should serve us well over the long-term as we work to reinforce LTC’s position as a REIT partner of choice for the seniors housing and care market.”
Evans Senior Investments Represents a Local Non-Profit’s Exit in Indiana
Evans Senior Investments (ESI) represented a local non-profit owner’s exit from the long-term care industry in Indiana. Encompassing three assets total, the senior living and skilled nursing portfolio sold for $29 million, or $97,000 per bed/unit.
Built in 1982 and 1995, all three properties provide top-of-the-line accommodations and a continuum of care for seniors housing and skilled nursing residents. At the time of marketing, the portfolio was being leased to an Indiana-based regional operator, who had approximately ten years remaining on its current triple net lease.
“Historically operating above a 2.0 lease coverage ratio, the portfolio proved to be a highly attractive investment to buyers during the marketing process,” said Evan Jakobsze, Analyst at ESI.
According to ESI, the operator plans to make extensive renovations to the properties to better serve the residents in these local submarkets.
Indiana has seen a lot of activity from ESI in recent years, with the ESI team closing over $200M in transaction volume in the state.
Companies featured in this article:
CareTrust REIT Inc., Evans Senior Investments, Links Healthcare Group
