Strawberry Fields REIT entered into a purchase and sale agreement with an unaffiliated seller for six senior care properties in Kansas. The purchase price is $24 million, or $68,000 per bed, payable at closing. The six properties include five skilled nursing facilities and one assisted living community, totaling 354 beds.
They will be leased to Advena Living for an initial 10-year period, plus two five-year tenant options on a triple-net basis. Additionally, the lease will increase Strawberry Fields’ annual rents by $2.4 million and is subject to 3% annual increases. Strawberry Fields plans to purchase the properties utilizing its current working capital, and anticipates closing the acquisition before year-end.
