CareTrust Buys Montana MOB
- Feb 09, 2018
CareTrust REIT Inc. has purchased a 186-bed skilled nursing facility in Butte, Mont. The facility was added to CareTrust’s existing master lease with Salt Lake City-based Eduro Healthcare LLC, which took over operations on Feb. 1, 2018.
The overall investment for the asset exceeded $5 million, including transaction expenses. The first increase from Eduro’s amended lease will be roughly $540,000 with yearly CPI-based rent escalators. With 12 years remaining until maturity and two five-year renewal options, the acquisition was subsidized through CareTrust REIT’s $400 million unsecured revolving credit.
Evans Senior Investments CEO Jeremy Stroiman represented the seller, a national health-care real estate brokerage firm, in the transaction.
“Eduro plans to grow its presence in Montana and has been seeking such an opportunity for some time,” said Michael Bewsey, managing director of Eduro Healthcare, in prepared remarks.
In November 2017, CareTrust REIT Inc. acquired three skilled nursing facilities (SNFs), providing mortgage financing for a fourth Southern California facility.