CareTrust REIT Acquires Four Assisted Living Communities for $27M

by Jeff Shaw

SAN CLEMENTE, Calif. — CareTrust REIT Inc. (NASDAQ: CTRE) has acquired four assisted living communities in the Southeast and Midwest for an aggregate purchase price of $27 million.

The portfolio totals 440 units. The four properties are located in Baltimore, Fort Wayne, Ind., West Allis, Wis., and Fort Myers, Fla.

Three of the transactions were structured as a sale-leaseback with the seller, Priority Life Care LLC, while the Fort Myers community will be leased to Better Senior Living Consulting LLC.

 The new master lease with Priority carries an initial term of 15 years, with two five-year renewal options and CPI-based rent escalators.

The acquisitions were funded using cash on hand of approximately $15 million, with the balance coming from approximately $12 million of funds drawn on CareTrust’s $400 million unsecured revolving credit facility. With the draw, CareTrust has approximately $97 million of debt currently outstanding on its unsecured line.

CareTrust is a publicly traded seniors housing and healthcare REIT based in San Clemente.

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