SAN CLEMENTE, Calif. — CareTrust REIT Inc. (NYSE: CTRE) has participated in the origination of over $52 million in mezzanine loans. The financings are secured by three portfolios of 26 properties comprising 3,050 skilled nursing beds and 186 assisted living units in Virginia, Missouri, and California.
CareTrust’s participation in the Virginia and Missouri mezzanine financings was done alongside a co-lender: the Northwind Group. Northwind’s healthcare portfolio includes investments in nearly 200 skilled nursing facilities and senior living communities. CareTrust provided $35 million in mezzanine loan proceeds in connection with the Virginia financing, which is secured by 15 properties totaling 1,675 skilled nursing beds and 34 assisted living units across several densely populated seniors’ markets in Virginia. The Missouri loan, in which CareTrust provided approximately $9.8 million in mezzanine loan proceeds, is secured by 10 properties totaling 1,245 skilled nursing beds and 152 assisted living units across the metro areas of Kansas City and St. Louis.
The Virginia and Missouri financings were made in connection with facilities operated by leading regional operators that have track records of improving quality of care and stabilizing facilities. Each of these two mezzanine loans carries a 42-month term and a variable rate.
CareTrust also closed on an approximately $7.4 million mezzanine loan to a regional investor in healthcare real estate in connection with the acquisition of a 130-bed skilled nursing facility in Pasadena, California. The loan has a five-year term and accrues interest at a fixed rate of 11.5 percent. The property will be operated by an experienced California skilled nursing operator and an existing tenant of CareTrust.
The investments were funded using cash on hand.