CareTrust Expands in Texas with New Operator Relationship
June 02 2023 - 7:00AM
Business Wire
CareTrust REIT, Inc. (NYSE:CTRE) announced today that it has
acquired a 125-bed skilled nursing facility located in the greater
Houston metropolitan area. The facility will be operated by an
affiliate of Evergreen Health Group, LLC, a new tenant relationship
for CareTrust.
Evergreen Health Group is a Texas-based operator of skilled
nursing facilities primarily owned by Selina Chao, a proven and
experienced industry veteran. Evergreen, who took over operations
on June 1, 2023, has entered into a 15-year NNN lease with
CareTrust that includes two, 5-year extension options and annual
CPI-based rent escalators. James Callister, CareTrust’s Chief
Investment Officer, commented that, “As we look to continue the
expansion of our operator base, Evergreen and Selina have
demonstrated their commitment to quality care and their desire for
growth. We have been duly impressed by the Evergreen team and are
extremely excited to add them to our pool of best-in-class
operators.”
Selina Chao, Evergreen’s CEO, stated, “CareTrust has been an
ideal transaction partner throughout this process and their belief
in Evergreen and its people has opened additional doors for us and
has facilitated important growth opportunities.” Commenting on
Evergreen’s experience and success as a skilled nursing operator,
Joe Callan, CareTrust Senior Vice President of Investments, stated,
“Given Selina’s and her team’s approach and history of providing
excellent care to residents and a desirable environment for their
employees, we will continue to look for more opportunities to work
together to help Evergreen expand its operations in Texas.”
Mr. Callister went on to state, “Acquiring another facility in
Texas and the addition of a new operator relationship is consistent
with CareTrust’s stated focus of returning to asset acquisitions,
growing our footprint in attractive markets, and on matching great
operators with great opportunities where our access to capital and
low execution risk make us attractive buyers.”
CareTrust’s initial investment in the facility, inclusive of
transaction costs, was approximately $14.3 million. The facility is
scheduled to generate annual stabilized rent of approximately $1.4
million. The acquisition was funded using proceeds from the
Company’s $600 million unsecured revolving credit facility.
About CareTrustTM
CareTrust REIT, Inc. is a self-administered, publicly-traded
real estate investment trust engaged in the ownership, acquisition,
development and leasing of skilled nursing, seniors housing and
other healthcare-related properties. With a nationwide portfolio of
long-term net-leased properties, and a growing portfolio of quality
operators leasing them, CareTrust REIT is pursuing both external
and organic growth opportunities across the United States. More
information about CareTrust REIT is available at
www.caretrustreit.com.
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CareTrust REIT, Inc., (949) 542-3130, ir@caretrustreit.com
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