IRVINE, Calif. — Sabra Health Care REIT Inc. (Nasdaq: SBRA) has acquired two portfolios in Illinois, Oregon and Washington for a total cost of $84.7 million.
The REIT acquired a five-community portfolio in Illinois for $19.7 million. The portfolio includes 149 units, mostly memory care. Concurrent with the purchase, Sabra entered into a triple-net master lease agreement with Life’s Journey Senior Living to operate the portfolio. The lease has an initial term of 10 years with two five-year renewal options and provides for an annual rent escalator equal to the Consumer Price Index or 3 percent, whichever is greater.
The second portfolio included four communities in Washington and Oregon totaling 196 assisted living units and 18 independent living units. The purchase price was $65 million. Sabra entered into a triple-net master lease agreement with Radiant Senior Living to operate the portfolio. The lease has an initial term of 10 years with two five-year renewal options and provides for an annual rent escalator of 3 percent, resulting in annual lease revenues, determined in accordance with GAAP, of $5 million and an initial yield on cash rent of 6.75 percent.
Based in Irvine, Sabra is the 26th largest owner of seniors housing properties in the U.S., according to 2015 data from the American Seniors Housing Association.