CareTrust Adds Nursing Facility to Gem State Portfolio
- May 06, 2016
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.
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.
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