CareTrust REIT acquires two SNFS

CareTrust REIT Inc. has bought two seniors housing facilities and two skilled nursing facilities, all in California, for a total of more than $34 million.

The portfolio, of 293 SNF beds and 79 assisted living units, is leased to affiliates of California-based Covenant Care, LLC.

Rob Reis of Marcus & Millichap was the principal broker on the transaction.

The investment is expected to generate an initial cash yield of 9% based on the aggregate going-in annual cash rent of $3.1 million, under the terms of the existing leases, the company said.