ATLANTA — CareTrust REIT Inc. (NYSE:CTRE) has acquired a 148-bed skilled nursing facility located in the greater Atlanta metropolitan area. The acquisition represents CareTrust’s second skilled nursing facility in Georgia.
Concurrently with the acquisition, CareTrust has entered into a new tenant relationship with Elevation Group LLC, a Florida-based skilled nursing operator led by two industry veterans and brothers Ken and Dan Funk. Elevation, which took over operations on May 1, 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 $12.1 million. The facility is scheduled to generate first-year annual cash rent of $1.2 million. The acquisition was funded using proceeds from the Company’s $600 million unsecured revolving credit facility.