SAN CLEMENTE, Calif., Aug. 08, 2016 (GLOBE NEWSWIRE) -- CareTrust REIT, Inc. (NASDAQ:CTRE) today announced that it has acquired two seniors housing and two skilled nursing facilities located in California’s Central Valley for approximately $34.4 million, inclusive of transaction costs. The portfolio consists of 79 assisted living units and 293 skilled nursing beds, and is currently leased to affiliates of California-based Covenant Care, LLC.
“We are very excited to add these four facilities to our California portfolio,” remarked Mark Lamb, CareTrust’s Director of Investments. “Covenant Care is a highly-regarded post-acute care and seniors housing operator, and the existing leases are exceptionally well-covered,” he said.
Mr. Lamb noted that the sellers included three related but different ownership groups, adding an unusual level of complexity to the transaction. “The different sellers needed to exit in a fashion that was not only expeditious and orderly, but also fair to each individual seller group,” he said. Rob Reis of Marcus & Millichap, the principal broker on the transaction, added, “CareTrust made what could have been a very complex and contentious transaction very easy for our sellers, and for all involved.”
The Central Valley investment is expected to generate an initial cash yield of 9.0% based on the aggregate going-in annual cash rent of $3.1 million under the terms of the existing leases. The existing leases have initial terms that expire in 2019, subject to two five-year extension options, and include CPI-based rent escalators. The acquisition was funded using CareTrust's $400 million unsecured revolving credit facility.
About CareTrustTM
CareTrust REIT, Inc. is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition and leasing of seniors housing and healthcare-related properties. With 149 net-leased healthcare properties and three operated seniors housing properties in 20 states, CareTrust is pursuing opportunities nationwide to acquire properties that will be leased to a diverse group of local, regional and national seniors housing operators, healthcare services providers, and other healthcare-related businesses. More information about CareTrust is available at www.caretrustreit.com.