Strawberry Fields REIT entered into a purchase and sale agreement with an unaffiliated seller to acquire nine skilled nursing facilities. The facilities comprise 686 beds and will be purchased for $59 million (including certain consulting fees), $86,000 per bed, payable at closing. The company intends to utilize its current working capital and funds provided by a third-party lender to make payment for the purchase. Closing is anticipated to occur on or before July 1.
Eight of the facilities will be leased to the Tide Group and added to the master lease Strawberry Fields entered into in August 2024. The master lease will remain materially unchanged other than resetting the lease expiration for a new 10-year period. It includes two five-year tenant options. Additionally, the lease will increase the company’s annual rents by $5.5 million and is subject to 3% annual increases.
The ninth facility will be leased to an affiliate of Reliant Care Group LLC and will be added to the master lease Strawberry Fields assumed in December 2024. The master lease will remain materially unchanged other than resetting the lease expiration for a 15-year period. It includes two 10-year tenant options. Additionally, the lease will increase the company’s annual rents by $600,000 and is subject to 3% annual increases.
