CareTrust REIT headed to Fargo, North Dakota for its latest acquisition, adding a 110-bed skilled nursing facility to its portfolio for a purchase price of approximately $4.75 million, or $43,200 per bed, inclusive of transaction costs. There is also an estimated cap rate of about 13.25%. The facility was previously operated by HCR ManorCare and represents the second HCR facility CareTrust has picked up this year, having previously purchased a 99-bed facility in Aberdeen, South Dakota.
Like the Aberdeen property, the North Dakota facility was added to an existing master lease with Eduro Healthcare at an annual rate of $425,000, with a remaining term of 12 years, two five-year renewal options and CPI-based escalators. CareTrust will also rename the property The Meadows on University.