Sabra Acquires Two Communities in the Southeast for $28.5M

by Jeff Shaw

AUGUSTA, Ga., and GULF BREEZE, Fla. — Sabra Health Care REIT Inc. (NASDAQ: SBRA) has acquired a 100-unit seniors housing facility in Augusta and a former seniors housing facility in Gulf Breeze for an aggregate purchase price of $28.5 million.

The Augusta location, The Claiborne at West Lake, opened in late 2018 and was nearly 90 percent occupied at the time of the transaction. The transaction was underwritten with an initial cash yield of nearly 8 percent and features an earnout opportunity for the seller after 12 months.

Simultaneously with the acquisition, Sabra entered into a management agreement with Claiborne Senior Living, the incumbent manager, to continue managing the property.

In the second acquisition, Sabra acquired a vacant seniors housing facility. Sabra will fund up to $3 million of construction cost to convert the facility into a 60-bed addiction treatment center.

Simultaneously with the acquisition, Sabra added the facility to an existing triple-net master lease with Landmark Recovery. The lease has an initial 15-year term and an initial cash yield of 9 percent escalating annually at the greater of CPI or 2 percent. Landmark Recovery currently leases five addiction treatment facilities from Sabra.

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