CareTrust Adds Nursing Facility to Gem State Portfolio

The deal nets the new owner a constant revenue stream for the following 15 years.

By Alex Girda, Associate Editor

Boise, Idaho–A skilled nursing facility in Idaho’s capital and largest city was recently purchased by a real estate investment trust. CareTrust REIT paid $8.9 million for the Shaw Mountain at Cascadia facility in Boise. The trust sourced acquisition funding from its March 21st 8.5 million share equity offering.

Shaw Mountain at Cascadia
Shaw Mountain at Cascadia, Boise, Idaho

The acquisition was followed by a triple net leasing agreement between the new owner and Cascadia Healthcare, a post-acute healthcare company from Eagle, Idaho. The tenant sourced CareTrust for sale-leaseback financing due to the company’s profile and its “operator-focused philosophy”, Cascadia CEO Owen Hammond noted in prepared remarks.

Located at 909 Reserve St. in Boise, the nursing facility offers 98 beds and provides patients with post-acute care. The asset was acquired by CareTrust at a time when the company substantially expanded its portfolio with the $11.8 million acquisition of a 67-unit senior housing asset in North Carolina and the $10 million acquisition of a Bedford, Va., senior housing property which was immediately leased back to 20/Twenty Management.

According to the REIT, roughly $0.85 million in rental revenue will be generated by the Shaw Mountain facility. That is due to the leasing agreement signed with Cascadia, a 15-year master lease that also has two five-year renewal options and CPI rent escalators.

Image via Google Maps