Strawberry Fields REIT acquired a skilled nursing facility with 100 beds near Oklahoma City, Oklahoma, utilizing cash from its balance sheet. The facility is leased to an existing third-party operator that entered into a master lease for this facility, as well as for another facility that Strawberry Fields acquired in December 2024 (a skilled nursing facility featuring 100 beds in Oklahoma). The lease includes annual base rents of $500,000 with 3% annual rent increases and an initial term of 10 years with two options of five-year extensions.
The deal was revealed in the REIT’s first quarter earnings report, along with the closing of its purchase of six senior care facilities in Kansas. The purchase price for the facilities was $24 million, or $68,000 per bed/unit, payable at the closing. The facilities are leased under a new 10-year master lease agreement to a group of third-party tenants. Under the master lease, the tenants are on a triple net basis and have two five-year extension options. The tenants operate the facilities as five skilled nursing facilities and one assisted living community, all combining for 354 licensed beds.
