SAN CLEMENTE, Calif. — CareTrust REIT Inc. (NASDAQ: CTRE) has acquired a five-property portfolio of skilled nursing facilities in Illinois for $29.2 million.
As part of the acquisition, CareTrust has leased the properties to Illinois-based WLC Management Firm LLC. The seller was a private owner who is retiring from seniors housing. WLC has been operating the portfolio during the transition.
The 455-bed portfolio consists of Saline Care Center in Harrisburg, Carrier Mills Nursing & Rehabilitation in Carrier Mills, Stonebridge Senior Living Center in Benton, Pinckneyville Nursing & Rehabilitation Center in Pinckneyville, and DuQuoin Nursing & Rehabilitation Center in DuQuoin.
The portfolio is scheduled to generate initial annual rent of $2.9 million, for an initial cash yield of 10 percent. The new master lease carries an initial term of 15 years, with two five-year renewal options and CPI-based rent escalators. CareTrust REIT funded the acquisition with cash on hand.
Based in San Clemente, CareTrust is a publicly traded REIT specializing in seniors housing and healthcare-related properties.