CareTrust Buys Austin Skilled Nursing Portfolio
The REIT's $32.5 million acquisition includes two properties with more than 240 beds.
Cedar Pointe Health & Wellness Center. Image via Google Street View
CareTrust REIT has acquired two senior housing facilities totaling 241 beds in the Greater Austin area for $32.5 million. The purchase price includes the transaction costs of the off-market deal.
The buyer financed the acquisition through a $600 million unsecured revolving line of credit.
Affiliates of The Ensign Group have taken over operations of the skilled nursing facilities in Austin and Cedar Park, Texas.
Both properties were added to a preexisting master lease pool between Ensign and CareTrust. That modification extends the agreement for an additional 10 years. The master lease has 17 years remaining with three options to renew for an additional five years.
The properties include Sedona Trace Health & Wellness Center at 8324 Cameron Road in Austin as well as Cedar Pointe Health & Wellness Center at 1301 Cottonwood Creek Trail in Cedar Park. The skilled nursing facilities have 119 and 122 beds, respectively. Both facilities provide short-term rehabilitation as well as long-term care.
The assets delivered in 2017 and are within 20 miles of each other. Sedona Trace is 8 miles northeast of downtown Austin. Cedar Pointe, some 22 miles from the city center, is located near the Cedar Park Regional Medical Center.
In November, CareTrust purchased a four-property portfolio in the Dallas-Fort Worth metro. The transaction increased the company’s footprint by 578 beds.
