CareTrust REIT Buys Assisted Living Facility In California In JV Investment Of $10.7 Mln

(RTTNews) - CareTrust REIT, Inc. (CTRE) said on Tuesday that it has acquired The Villas at San Bernardino, a 78-unit assisted living and memory care facility located in San Bernardino, California.

In connection transaction, CareTrust and a third-party regional healthcare real estate investor entered into a joint venture or JV under which CareTrust provided an investment of $10.7 million.

CareTrust is the managing member of the JV entity and will get initial contractual yield of around 9.3 percent.

The facility will be operated by Oxford Health Group, a new operator relationship for CareTrust.

Oxford and the JV landlord entered into a new, triple-net lease deal that provides for 2 percent fixed annual rent escalators, a 10-year initial term, and four, 5-year extension options.

The investments were funded using cash on hand.

CTRE was trading down by 1.28 percent at $21.59 per share in the pre-market trade on the New York Stock Exchange.