CareTrust spends $96 million to purchase four Texas SNFs
The portfolio is “well-regarded” and recently built, Lamb says.
CareTrust REIT Inc. acquired a portfolio of four Texas skilled nursing properties for $96 million, the company announced in early December.
The portfolio, located in the Dallas-Fort Worth area, includes three skilled nursing facilities and one skilled nursing campus. Together, the properties include 540 skilled nursing beds and 28 assisted living units in “well-regarded, well-located and recently built or renovated facilities,” Mark Lamb, CareTrust's director of investments, said in a press release.
The properties will be operated by Pawtucket, RI-based Priority Management Group LLC. They are expected to generate first-year annual cash rent of $8.6 million, company officials said. The new master lease for the facilities has an initial term of 15 years, with two five-year renewal options, they added.
“We are very excited to be welcoming Priority Management Group, an exceptional operator with a very experienced and highly successful management team, to the CareTrust family,” Lamb said.
Priority CEO Doug Boulware added that his organization is “excited to join forces with CareTrust because, as former operators themselves, they uniquely understand both our patient-centric mindset and our vision for disciplined future growth."
Boulware also noted that the operator “is looking forward to growing with CareTrust throughout Texas and the Southeast.”
The purchase marks the company's first skilled nursing acquisition in the state since CareTrust spun off from The Ensign Group Inc. in 2014, the Orange County Business Journal reported.
CareTrust currently owns 153 net-leased healthcare properties and three operated seniors housing properties across 20 states. Most of the properties are located in California, Texas, Arizona, Utah and Ohio.