CareTrust REIT Buys IA Skilled Nursing Portfolio

Greg Stapley of CareTrust REIT

IOWA CITY, IA—CareTrust REIT, Inc. has just acquired a portfolio of nine skilled nursing facilities in Iowa. The San Clemente, CA-based company has also decided to lease the portfolio, which includes 518 operating skilled nursing beds, to its longtime partner Trillium Healthcare Group, LLC through an amendment to their existing master lease. CareTrust paid about $32.7 million for the nine facilities. It will receive an initial annual rental revenue of about $3.16 million under the terms of the master lease, which carries an initial term of 14.5 years with two five-year renewal options and CPI-based rent escalators. “ The old operator had done a very good job but was retiring,” Greg Stapley, CareTrust’s chairman and chief executive officer, tells GlobeSt.com. “We are thrilled to be expanding our relationship with Trillium. For the past several months we have been looking for opportunities to grow together, and this portfolio fit right within Trillium’s operating footprint. We felt that these were very well-run properties located in areas where demand is very steady.” “ With CareTrust’s continued commitment to acquiring quality real estate assets and Trillium’s intense focus on high-quality resident and patient outcomes, we feel the future of our partnership could not be brighter,” adds Rich Mason, Trillium’s chief executive officer. Trillium operates 29 skilled nursing and senior living communities throughout the Southeast and Midwest. In a separate transaction, CareTrust also recently acquired a 30-unit assisted living and memory care facility in San Angelo, TX. It now has 129 net-leased healthcare properties and three operated seniors housing properties in fifteen states, and Stapley says that the company continues to seek compelling opportunities nationwide to grow its portfolio. The IA acquisitions are:

• Iowa City Rehab and Health Care Center, 3661 Rochester Ave., Iowa City, IA

• Casa de Paz Health Care Center, 2121 W. 19th St., Sioux City, IA

• Osage Rehabilitation and Health Care Center, 830 South 5th St., Osage, IA

• Denison Care Center, 1202 Ridge Rd., Denison, IA

• Grandview Health Care Center, 508 2ndSt. N.E., Dayton, IA

• Pleasant Acres Care Center, 309 Railroad St., Hull, IA

• Lenox Care Center, 111 E. Van Buren., Lenox, IA

• Grundy Care Center, 102 East J Ave., Grundy, IA

• Garden View Care Center, 1200 W. Nishna Rd., Shenandoah, IA