CareTrust REIT Funds $26.7M Mortgage Financing with Purchase Option on Tennessee Skilled Nursing Portfolio

by Jeff Shaw

SAN CLEMENTE, Calif. — CareTrust REIT Inc. (NYSE:CTRE), a San Clemente-based REIT focused on skilled nursing properties, has funded a $26.7 million mortgage loan in connection with the borrower’s acquisition of a two-asset skilled nursing portfolio in Tennessee.

The properties feature a combined total of 276 licensed beds. The borrower group under the loan is a regional healthcare real estate owner and investor. Affiliates of The Ensign Group Inc. (NASDAQ: ENSG) took over operations on May 1 pursuant to a new, long-term, triple-net master lease with the borrower.

The loan is secured by a first-priority lien on the borrowers’ ownership interest in the real estate and carries a seven-year maturity with one 12-month extension and an annual interest rate of 9.1 percent.

The terms of the loan include CareTrust having the option to purchase the facilities in the future, subject to the master lease with affiliates of The Ensign Group remaining in place.

The investment was funded using cash on hand.

You may also like