Seeking to expand a partnership that is clearly working, CareTrust REIT tacked on an extra senior care campus to its existing seven-property master lease with WLC Firm, LLC. Located in the southern Illinois town of Mt. Carmel (and right in WLC’s geographic wheelhouse), the facility features 90 licensed skilled nursing beds and 38 supportive living beds.
WLC will replace the outgoing operator, which is leaving behind a sold four-star rated facility. The initial annual cash rent for the property is expected to be about $853,000, and the lease comes with a 15-year term, plus two five-year extension options. CareTrust used cash on hand to pay to purchase price, which came out to about $9.0 million (inclusive of transaction costs), or just over $70,000 per bed, with an estimated 12.7% cap rate.