CareTrust REIT Closes $211M Senior Housing Acquisition

The 12-property portfolio totals 1,734 beds across Louisiana and Texas. The seller is an affiliate of BM Eagle Holdings LLC.

CareTrust REIT has announced the closing of a $211 million deal to acquire 12 senior housing properties across Louisiana and Texas. The purchase includes a total of 1,734 beds and is expected to add more than $19 million in new annual revenue for the firm.

The acquisition was funded with a combination of cash and CareTrust’s $600 million unsecured revolving credit facility. The seller is an affiliate of BM Eagle Holdings LLC.

The properties include seven skilled nursing facilities and one skilled nursing and assisted living facility in Louisiana, as well as three skilled nursing facilities and one continuing care retirement community in Texas. The Lousiana properties were re-tenanted at the deal closing with existing CareTrust tenant Priority Management Group and the Texas properties were re-tenanted with Southwest LTC under a new master lease with CareTrust.

“We are extremely pleased to be expanding our relationship with Priority Management, and to be completing our inaugural deal with Southwest LTC,” said Mark Lamb, CareTrust’s chief investment officer, in prepared remarks. “Both operators have excellent reputations for quality care and are highly successful, and both were instrumental in helping us complete an extremely complicated transaction.”

In March 2018, CareTrust acquired a 464-bed skilled nursing portfolio in Grand Rapids, Mich., for roughly $41.5 million.