Just before Iowans gathered to caucus and politicians readied to leave the Hawkeye State, CareTrust REIT closed on its major move into Iowa, acquiring a nine-facility skilled nursing portfolio that included 518 operating beds for $32.7 million, or $63,127 per bed. CareTrust will lease the facilities to operator Trillium Healthcare Group through an amendment to their existing master lease, which carries an initial term of 14.5 years, two five-year renewal options and CPI-based rent escalators. Initial annual rental revenue is approximately $3.16 million, for a cash yield of 9.7%.

On the same day in a separate transaction, CareTrust acquired a 30-unit assisted living/memory care community in San Angelo, Texas for approximately $4.9 million, or $163,333 per unit. Similar to the previous transaction, CareTrust will triple-net lease the community back to the operator, New Haven Assisted Living, with an initial term of 15 years, two five-year renewal options and CPI-based rent escalators. Initial annual rental revenue for CareTrust is approximately $404,000, for an 8.24% initial cash yield.