CareTrust REIT just bought an assisted living community in Bountiful, Utah, leasing it to Bayshire LLC, which will take over operations going forward. Built in 1999, the 62-unit community is well situated on the campus of Lake View Hospital, an affiliate of MountainStar Healthcare and HCA Healthcare. It was previously owned by the not-for-profit South Davis Community Hospital Campus, but was sold so South Davis could focus on its adjacent higher-acuity operations.
Bayshire took over the operations, adding the facility to its master lease with CareTrust that has a remaining term just under 15 years, plus two five-year renewal options, and carries annual CPI-based rent escalators. Annual cash rent under the Bayshire master lease will increase by approximately $600,000. The acquisition was funded using a combination of cash on hand and CareTrust’s $600 million unsecured revolving credit facility.