CareTrust REIT Buys Skilled Nursing Facilities in NM, TX
- Jun 07, 2017
CareTrust REIT Inc. has acquired two skilled nursing facilities in Albuquerque, N.M., and Brownsville, Texas, for about $27.3 million, inclusive of transaction costs. Both facilities are leased to affiliates of OnPointe Health LLC, a regional post-acute care provider. Mark Lamb, CareTrust REIT’s director of investments, said the newly-constructed assets were acquired from a Texas developer with cash on hand and are progressing well through lease-up and stabilization.
Located at 2410 19th S.E., in Albuquerque, N.M., the Rio at Cabezon is a 136-bed facility near the Presbyterian Rust Medical Center. The property has easy access to Interstate 25, and has some 17 years remaining on its lease.
Located at 310 America Drive in Brownsville, Texas, the Rio at Fox Hollow is a 126-bed facility with easy access to I-69E. The existing lease has 19 years remaining.
The investment is expected to generate an initial cash yield of 9 percent, based on the aggregate going-in annual cash rent of $2.5 million under the existing lease terms. The two leases include a hybrid of fixed and CPI-based rent escalators.
CareTrust REIT Inc. has 162 net-leased health-care properties and three operated seniors housing properties in 22 states.
Image courtesy of OnPointe Health LLC