Apr. 2 at 10:47 AM
$CTRE $ENSG CareTrust REIT announces
$55M acquisition of two California facilities
CareTrust REIT (CTRE) announced today the acquisition of two facilities in separate transactions with a total investment amount of approximately
$55M. On April 1, 2025, the company acquired a skilled nursing and assisted living campus facility located in Los Alamitos, California. The campus includes a 150-bed skilled nursing facility and a 140-bed residential care facility for the elderly. CareTrust's acquisition of the campus facility was completed through a joint venture arrangement entered into between CareTrust and a third-party healthcare real estate owner.
At closing, CareTrust provided a combined common equity and preferred equity investment totaling approximately
$34M at an initial contractual yield on its combined preferred and common equity investments in the joint venture of approximately 9.7%. The joint venture has leased the facility to affiliates of The Ensign Group (ENSG) pursuant to a new 15-year NNN lease that includes two, 5-year extension options and annual CPI-based escalators.
CareTrust has also announced that on March 1, 2025, the company acquired a 160-bed residential care facility for the elderly located in Concord, California for approximately
$20.6M, inclusive of transaction costs. The Concord facility will be operated by, and has been added to CareTrust's existing master lease with, affiliates of Kalesta Healthcare Group. Annual cash rent for the first year is approximately
$1.9M, with CPI-based annual escalators.
