CareTrust REIT Acquires Two Illinois Memory Care Facilities with New Operator Relationship

by Jeff Shaw

CHICAGO — CareTrust REIT Inc. (NYSE: CTRE) has acquired a 136-unit, two-facility memory care portfolio located in metro Chicago.

Chapters Living will take over operations at the community, which is a new relationship for CareTrust. Chapters Living is a seniors housing and memory care operator based in the Midwest led by industry veteran Danny Stricker.

The two properties will be placed in a 15-year, triple-net lease. The agreement includes two five-year extension options as well as annual CPI-based rent escalators.

CareTrust’s initial investment in the facilities, inclusive of transaction costs, was approximately $18.2 million. The acquisition was funded using proceeds from the Company’s $600 million unsecured revolving credit facility and provides for initial annual base rent of $1.7 million with rent being abated for the first three months.

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