Illinois Skilled Nursing Portfolio Trades for $29M

CareTrust REIT has acquired five skilled nursing facilities and entered into a new tenant relationship with WLC Management.
Carrier Mills Nursing & Rehabilitation

Carrier Mills Nursing & Rehabilitation

Chicago—San Clemente, Calif.-based CareTrust REIT, specializing in the ownership, acquisition and leasing of senior housing and health care-related properties, has announced the purchase of five skilled nursing facilities in Illinois. The company acquired the facilities for the combined purchase price of $29.2 million, which included the transaction costs.

The 445-bed, newly acquired portfolio includes Saline Care Center in Harrisburg, Carrier Mills Nursing & Rehabilitation in Carrier Mills, Stonebridge Senior Living Center in Benton, Pinckneyville Nursing & Rehabilitation Center in Pinckneyville, and DuQuoin Nursing & Rehabilitation Center in DuQuoin.

Dave Sedgwick, vice president of operations with CareTrust REIT

Dave Sedgwick, vice president of operations with CareTrust REIT

In completing this transaction, CareTrust entered into a new tenant relationship with affiliates of Illinois-based WLC Management Firm LLC, which took over operations. As reported by Dave Sedgwick, vice president of operations with CareTrust, WLC’s CEO Scott Stout has been managing the portfolio’s day-to-day operations since 2008 on behalf of the outgoing owner. “Although we are technically re-tenanting this portfolio, we are pleased that our incoming operator knows these operations, their personnel and their markets so well,” Sedgwick said in a prepared statement.

CareTrust expects the investment to generate a combined initial annual rent of $2.9 million, for a cash yield of 10 percent. The master lease has an initial term of 15 years, with two five-year renewal options and CPI-based rent escalators. The REIT funded the purchase with cash on hand.

Images courtesy of CareTrust REIT