CareTrust REIT Acquires Southern California Skilled Nursing Facility in Joint Venture Investment
September 06 2023 - 6:01AM
Business Wire
CareTrust REIT, Inc. (NYSE:CTRE) announced today that it has
completed a joint venture investment to acquire La Fuente Post
Acute, a 187-bed skilled nursing facility located in Vista,
California. Once regulatory approval is obtained, the facility will
be operated by Bayshire Senior Communities (a current tenant of
CareTrust) pursuant to a new 15-year lease with the joint venture
landlord.
To acquire the facility, CareTrust and a third-party regional
healthcare real estate investor entered into a joint venture.
CareTrust’s combined common equity and preferred equity investments
in the joint venture total $25.5 million. CareTrust’s initial
contractual yield on its combined preferred and common equity
investments in the joint venture is approximately 9.7%. The lease
provides for 3% fixed annual rent escalators and two, 5-year
extension options. CareTrust is the managing member of the joint
venture entity.
“Our relationship with CareTrust has been transformative for our
company,” said Scott Kirby, Bayshire’s Chief Executive Officer. Mr.
Kirby further stated, “We are thrilled that this transaction gives
us the opportunity to continue growing with CareTrust as we further
develop what is already a valued business relationship.”
“Bayshire’s focus on patient care and their proven versatility
in improving operations at their buildings has continued to impress
us,” said James Callister, CareTrust’s Chief Investment Officer.
“It’s exciting for us to help facilitate the growth of a quality
operator like Bayshire,” said Mr. Callister.
The investments were funded using cash on hand.
About CareTrust™
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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