MILWAUKEE — CareTrust REIT Inc. (NASDAQ: CTRE) has acquired two seniors housing communities in the Milwaukee metro area for $26.1 million.
The portfolio consists of Applewood of Brookfield, a 48-unit assisted living and memory care facility in Brookfield, Wis., and Applewood of New Berlin, a 40-unit assisted living and memory care facility located in New Berlin, Wis.
CareTrust added the properties to its master lease with New York-based operator Premier Senior Living LLC.
The new investments are expected to generate additional annual cash rent of $2.2 million, resulting in an initial cash yield of 8.3 percent. The amended Premier Senior Living master lease has a remaining initial term of approximately 14 years, with two five-year renewal options and CPI-based rent escalators.
CareTrust funded the acquisition with its $400 million unsecured revolving credit facility.