DANA POINT, Calif. —CareTrust REIT (NYSE: CTRE) has acquired a skilled nursing portfolio located in the Mid-Atlantic for roughly $142 million including transaction costs. The acquisition was funded with cash on hand. The seller was not disclosed.
Totaling 532 licensed beds, the portfolio is operated by a tenant engaged in a triple-net lease with annual inflation-based rent escalators and multiple renewal options.
According to CareTrust, the portfolio is expected to generate a 9 percent stabilized yield.
“The quality of the portfolio, attractive coverage metrics, and the opportunity to transact with a strong new tenant with a proven operating and credit profile make this a compelling investment and a great example of the disciplined, relationship-driven growth we continue to pursue,” says James Callister, chief investment officer of CareTrust.