CareTrust REIT announced today that, in a joint venture with a partner, it has acquired a portfolio of skilled nursing facilities located in the Pacific Northwest for a total purchase price of approximately $146 million, inclusive of transaction costs.
Portfolio: The portfolio features 10 facilities comprising 911 licensed beds located across Idaho, Oregon and Washington. This acquisition was completed through a joint venture arrangement entered into between CareTrust and a large third-party healthcare real estate owner.
At the closing, CareTrust provided common equity and preferred equity investments totaling approximately $141 million at an initial contractual yield on its combined investment in the joint venture of approximately 9%. The total investment amount was funded with a combination of cash on hand and a draw from the Company’s revolving credit line, which brought the outstanding balance on the revolver to approximately $475 million.
This joint venture has leased the facilities to two existing tenants who each have strong rent coverage on existing leased CareTrust properties and deep operating experience pursuant to new 15-year triple-net leases that include extension options and annual escalators.
The closing of this deal brings the company’s annual investment total to approximately $1.1 billion.
KEY QUOTES:
“We are excited to announce the acquisition of 10 skilled nursing properties in a transaction that reflects both our commitment to disciplined growth and the continued opportunity in the post-acute sector. Working alongside two strong existing tenants and our joint venture partner to navigate a complex closing structure has been a pleasure, and we’re thrilled to add to relationships that align with our long-term strategy.”
“After a busy 2024 deploying over $1.5 billion in skilled nursing and seniors housing investments, the momentum continues in 2025. We’re excited to announce this transaction after closing the Care REIT acquisition in May to highlight the concurrent opportunities in the US and UK to grow our portfolio. With our balance sheet strength, we’re positioned to pursue those opportunities in both markets simultaneously.”
James Callister, CareTrust’s Chief Investment Officer
“This acquisition further underscores the favorable investment environment we are seeing and highlights CareTrust’s unique ability to leverage its operator roots to grow our portfolio with high-quality tenants.”
Joe Callan, Senior Vice President of Investments
