CareTrust REIT Acquires Memory Care Asset in California for $12.6M

ESCONDIDO, Calif. — CareTrust REIT Inc. (NASDAQ:CTRE) has acquired Vista del Lago, a memory care facility in Escondido, for $12.6 million.

The 52-unit facility with 96 licensed beds has been leased to San Diego-based seniors housing operator Bayshire LLC, which has managed the facility since 2016.

The Cushman & Wakefield team of Rick Swartz, Jay Wagner, Aaron Rosenzweig, Dan Baker, Tim Hosmer and Bailey Nygard represented the seller, Torrey Pines Development Group.

The Vista del Lago transaction allowed Bayshire principal Scott Kirby, who was also a partner in the real estate seller, to recapitalize Bayshire and achieve a long-held goal of acquiring sole ownership of the operating company.

“[CareTrust’s] capital commitment gave us the opportunity to rationalize our ownership structure at a reasonable price, simplifying our operations and setting us up for future growth,” says Kirby

Dave Sedgwick, CareTrust’s chief operating officer, noted that Kirby has been a fixture in the San Diego healthcare community for many years.

“We’ve known and highly respected Scott since our operating days together at The Ensign Group,” he said.

Initial annual cash rent under the Bayshire master lease will be approximately $1 million, and the lease carries annual CPI-based rent escalators. The lease term is 15 years, plus two five-year renewal options. The acquisition was funded using cash on hand.