CareTrust REIT’s Central Valley Expansion
CareTrust REIT made a major expansion into California’s Central Valley, acquiring two senior care facilities in a pair of off-market transactions. The targets were a 70-bed skilled nursing facility in Modesto, and a senior care campus in Sacramento with 99 skilled nursing bed and 72 assisted living units. Both were leased to an existing CareTrust tenant, Kalesta Healthcare, LLC, under a master lease with about 14 years left on the initial term. There are also two five-year renewal options. Scheduled cash rent for the first two years is expected to be about $3.9 million with CPI-based escalators thereafter. CareTrust also committed to provide a revenue-producing $1.0 million fund for... Read More »
CareTrust REIT Adds Escondido Community to Portfolio
San Clemente, California-based CareTrust REIT acquired a memory care community in nearby Escondido (located about 20 miles north of San Diego) and retained the in-place operator Bayshire, LLC, which has managed the property for the seller since 2016. Originally built in 1981 as a skilled nursing facility, the property was converted to memory care and extensively renovated in 2015. It now includes 96 licensed beds in 52 units. Including about $100,000 in transaction costs, the REIT paid $12.6 million, or $242,300 per unit, for the recently-renovated community. Cushman & Wakefield’s team that includes Rick Swartz, Jay Wagner, Aaron Rosenzweig, Dan Baker, Tim Hosmer and Bailey Nygard... Read More »
How Have the REIT Stocks Performed in 2019?
Last week, we discussed the stock performance of the seniors housing and healthcare providers. Now, it’s the healthcare REITs’ turn. Overall, it was a good first half of the year, with all of them posting price increases, with the exception of Senior Housing Properties Trust, reflecting its Five Star problems. Its share price tumbled by 29.4%. The top performer was New Senior Investment Group, but it came off a terrible 2018 (down 45%) and still trades below what it did 18 months ago. The star of the year, so far, is CareTrust REIT which is up 28.8% after being the second-best performer last year with a price increase of 10%. And then there is HCVenTower, otherwise known as the Big Three,... Read More »
CareTrust Invests in Idaho
CareTrust REIT and Cascadia Healthcare expanded their relationship to 12 facilities and 1,013 total beds with the REIT’s acquisition of a brand-new transitional care facility in Nampa, Idaho. This transaction was by no means out of the blue. Cascadia’s development affiliate opened the 99-bed facility in 2017, but before that, CareTrust had made a preferred equity investment in the property in addition to obtaining a purchase option at a formula-based price upon stabilization of the operations. Fill-up must have gone smoothly, since the property sold to CareTrust for approximately $12.8 million, inclusive of transaction costs and after receiving credit for its original equity investment and... Read More »