Strawberry Fields REIT, Inc. announced that it completed the acquisition of nine skilled nursing facilities comprising 686 beds in Missouri for $59 million, or $86,000 per bed. The REIT completed the acquisition using cash on hand and the issuance of approximately $2.0 million in OP Units of Strawberry Fields REIT LP to the seller.
Eight of the facilities were leased to Tide Group and were added to the master lease the company entered into in August 2024. The master lease remained materially unchanged other than resetting the lease expiration for a new 10-year period and includes two five-year tenant options. Additionally, this acquisition increased Tide’s annual rents tied to its master lease by $5.5 million and is subject to 3% annual increases.
The ninth facility was leased to an affiliate of Reliant Care Group LLC. The facility was added to the master lease the company assumed in December 2024. The master lease remained materially unchanged other than resetting the lease expiration for a 15-year period and includes two 10-year tenant options. Additionally, this acquisition increased Reliant’s annual rents by $600,000 and is subject to 3% annual increases.
Through this acquisition, the REIT now has 17 skilled nursing facilities in Missouri and is continuing to look for additional opportunities. This acquisition also expanded its master lease relationships with existing relationships, including Tide and Reliant.
