HOUSTON — CareTrust REIT Inc. (NYSE: CTRE) has acquired a 125-bed skilled nursing facility located in the greater Houston metropolitan area.
An affiliate of Evergreen Health Group will operate the property, opening a new tenant relationship for CareTrust. The specific name and location of the property were not disclosed.
Evergreen Health Group is a Texas-based operator of skilled nursing facilities primarily owned by Selina Chao, an industry veteran. Evergreen has entered into a 15-year, triple-net lease with CareTrust that includes two five-year extension options and annual CPI-based rent escalators.
CareTrust’s initial investment in the facility, inclusive of transaction costs, was approximately $14.3 million. The facility is scheduled to generate annual stabilized rent of approximately $1.4 million. The acquisition was funded using proceeds from the Company’s $600 million unsecured revolving credit facility.