CareTrust REIT Nabs Grand Rapids-Area Skilled Nursing Portfolio
- Mar 07, 2018
CareTrust REIT Inc. has expanded its skilled nursing portfolio with the acquisition of a 464-bed, five-property ensemble spread around Grand Rapids, Mich. Metron Integrated Health Systems, the portfolio’s long-time owner, was the other party of the sale-leaseback transaction, using this opportunity to recapitalize the company.
The total investment reached roughly $41.5 million, including transaction costs. The initial overall yearly rent of the portfolio will be around $3.7 million, with annual CPI-based rent escalators. The 15-year lease has two additional five-year renewal options. The deal was funded using a mix of cash on hand and CareTrust’s $400 million unsecured revolving credit facility.
“We’ve been committed to our residents, patients, and employees for over 40 years, and we expect our new partnership with CareTrust to enable us to expand our reach in the years ahead,” said Metron’s owner & CEO Mark Piersma in prepared remarks.
Evans Senior Investments’ President Jason Stroiman represented the seller. “Because of some unusual circumstances, we were very limited on who we could invite into this transaction. We chose CareTrust because their reliability and execution are unsurpassed in the industry,” added Stroiman.