CareTrust REIT Acquires Southern California Assisted Living Facility in Joint Venture Investment
January 09 2024 - 5:01AM
Business Wire
CareTrust REIT, Inc. (NYSE:CTRE) announced today that it has
acquired The Villas at San Bernardino, a 78-unit assisted living
and memory care facility located in San Bernardino, California.
In connection with its acquisition of the facility, CareTrust
and a third-party regional healthcare real estate investor entered
into a joint venture arrangement under which CareTrust provided a
combined common equity and preferred equity investment amount
totaling $10.7 million. CareTrust is the managing member of the
joint venture entity. CareTrust’s initial contractual yield on its
combined preferred and common equity investments in the joint
venture is approximately 9.3%.
The facility will be operated by Oxford Health Group, a new
operator relationship for CareTrust. Oxford is a midsize California
seniors housing operator that focuses on strategically integrating
healthcare services into its communities, allowing higher acuity
residents to further age in the community setting. Oxford and the
joint venture landlord entered into a new, triple-net lease
agreement that provides for 2% fixed annual rent escalators
(commencing with the third lease year), a 10-year initial term, and
four, 5-year extension options.
“We are thrilled to kick off 2024 with the acquisition of a
quality assisted living property with a new relationship with an
accomplished operator,” said James Callister, CareTrust’s Chief
Investment Officer. “We anticipate expanding the relationship as we
find more assisted living properties that fit our shared criteria,”
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.
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CareTrust REIT, Inc., (949) 542-3130, ir@caretrustreit.com
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