CareTrust REIT Acquires Southern California Skilled Nursing Facility in Joint Venture Investment

By: CareTrust REIT, Inc. via Business Wire

September 06, 2023 at 06:01 AM EDT

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.