CareTrust REIT Doubles Down In Texas

May 6, 2019, Steve Monroe, SeniorCare Investor - CareTrust REIT just keeps on growing, adding its 212th net-leased property to its portfolio.  The target, a 118-bed skilled nursing facility in Dallas, Texas, sold for approximately $10.0 million, or about $84,750 per bed, inclusive of transaction costs.  The land it sits on is subject to a long-term ground lease in favor of the Dallas Housing Authority.

CareTrust funded the deal with cash on hand, and leased the facility to Next Gen P, LLC under a master lease with an initial lease term of 15 years, two five-year renewal options and CPI-based rent escalators.

The deal follows CareTrust’s larger acquisition of 12 former Senior Care Centers skilled nursing facilities in Texas and Louisiana for $211 million.  Sabra Health Care REIT had previously sold these facilities, plus 16 more, to BM Holdings, which then turned around and immediately sold the 12 facilities to CareTrust.