CareTrust REIT, together with a large third-party healthcare real estate owner, acquired a skilled nursing portfolio in the Pacific Northwest. The portfolio comprises 10 facilities with 911 beds across Idaho, Oregon and Washington. The total purchase price was approximately $146 million, or $160,300 per bed, inclusive of transaction costs.
At closing, CareTrust provided common equity and preferred equity investments totaling approximately $141 million at an initial contractual yield on its combined investment in the joint venture of approximately 9.0%. The total investment amount was funded using a combination of cash on hand and a draw from the company’s revolving credit line, which brought the outstanding balance on the revolver to approximately $475 million. The joint venture has leased the facilities to two existing tenants that each have strong rent coverage on existing leased CareTrust properties pursuant to new 15-year triple-net leases that include extension options and annual escalators.
The closing of this transaction brings CareTrust’s annual investment total to approximately $1.1 billion. In 2024, the company deployed over $1.5 billion in skilled nursing and seniors housing investments. This transaction was announced after closing the Care REIT acquisition in May.
