CareTrust REIT, Inc. completed a joint venture investment to acquire La Fuente Post Acute, a 187-bed skilled nursing facility located in Vista, California. Once regulatory approval is obtained, the facility will be operated by Bayshire Senior Communities, a current tenant of CareTrust’s, pursuant to a new 15-year lease with the joint venture landlord.
CareTrust and a third-party regional healthcare real estate investor entered into a joint venture to acquire the facility, with CareTrust’s combined common equity and preferred equity investments in the joint venture totaling $25.5 million. CareTrust’s initial contractual yield on its combined preferred and common equity investments in the joint venture is approximately 9.7%. The lease provides for 3% fixed annual rent escalators and two, five-year extension options. CareTrust is the managing member of the joint venture entity. The investments were funded using cash on hand.
