CareTrust REIT Adds New Operator in West Coast Portfolio Acquisition
02 June 2023 - 9:03PM
Business Wire
CareTrust REIT, Inc. (NYSE:CTRE) announced today that it has
worked together with a regional investor in healthcare real estate
to facilitate the acquisition of a multi-facility portfolio of
skilled nursing facilities located on the West Coast. As part of
the transaction, CareTrust acquired three skilled nursing
facilities on June 1, 2023 with one additional facility scheduled
to close once third-party consents have been obtained. 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 (including the three
facilities acquired on June 1) pursuant to a new 15-year master
lease with two, 5-year extension options. Links is an experienced
operator founded by Toby Tilford and Curt Rodriguez and currently
operates 16 skilled nursing and senior housing communities. Links
Co-Founder Curt Rodriguez said, “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.” Speaking about the transaction process, he noted that, “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.”
Dave Sedgwick, CareTrust’s President and CEO, spoke highly of
Links as a leading, best-in-class healthcare provider in the
Western U.S. “We have known Links and its principals for many years
and have been consistently impressed by their track record of
disciplined growth and successful operations. We are thrilled to
finally work together and to help their continued growth.” James
Callister, CareTrust’s Chief Investment Officer, stated, “This deal
demonstrates our current focus on returning to asset acquisitions,
sourcing more off-market deals, and expanding our operator bench.
These will continue to be key focus points for us throughout the
year.”
CareTrust’s initial investment in the three facilities acquired
on June 1, inclusive of transaction costs, was approximately
$71.5M. Aggregate annual cash rent for the first year is
approximately $5.4 million, increasing to approximately $6.1
million in the second year, and increasing to approximately $7.1
million in the third year, with CPI-based annual escalators
thereafter. The acquisition of these facilities was funded using
proceeds from the Company’s $600 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,
development and leasing of skilled nursing, seniors housing and
other healthcare-related properties. With a nationwide portfolio of
long-term net-leased properties, and a growing portfolio of quality
operators leasing them, CareTrust REIT is pursuing both external
and organic growth opportunities across the United States. More
information about CareTrust REIT is available at
www.caretrustreit.com.
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CareTrust REIT, Inc., (949) 542-3130, ir@caretrustreit.com
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