Walker & Dunlop announced its involvement in the sale of two skilled nursing facilities in Montana to CareTrust REIT. We recently covered the transaction, which represented CareTrust’s first since the pandemic began earlier this year.
The facilities include Apple Rehab Cooney, an 80-bed facility located on the campus of the St. Peter’s Health Regional Medical Center in Helena, and Elkhorn Healthcare & Rehabilitation, a 70-bed facility in nearby Clancy. Eduro Healthcare took over operations.
Using cash on hand, CareTrust paid around $16 million, or $106,700 per bed, for the facilities, inclusive of transaction costs. Tony Cassie and Sam Thompson of Walker & Dunlop facilitated the off-market deal, serving as advisors to both the seller (a long-term client of W&D) and CareTrust.
In addition, the REIT will provide around $500,000 for Eduro to improve the properties, which are already stabilized. The transaction will increase annual cash rent under the existing Eduro master lease by about $1.55 million. There is a remaining term of approximately 9.5 years on the master lease, with two five-year renewal options and CPI-based annual rent escalators.