SAN CLEMENTE, Calif., March 02, 2017 (GLOBE NEWSWIRE) -- CareTrust REIT, Inc. (NASDAQ:CTRE) announced today that it acquired five skilled nursing facilities in Illinois. The purchase price was approximately $29.2 million, inclusive of transaction costs. In connection with the acquisition, CareTrust REIT entered into a new tenant relationship with affiliates of Illinois-based WLC Management Firm, LLC, which took over operations effective March 1, 2017.
"We are delighted to begin a new relationship with industry veteran Scott Stout and the WLC team, and to add these well-regarded properties to our portfolio," said Dave Sedgwick, CareTrust REIT's Vice President of Operations. He noted that Mr. Stout has been managing the portfolio’s day-to-day operations since 2008 for the outgoing owner, Dr. Roger Herrin, who is retiring from the post-acute and convalescent care business after 43 years. “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,” he added.
Scott Stout, WLC’s chief executive officer, said, “I love these facilities and the staff, residents and patients that make them so special, and I’m honored to continue the legacy of quality, local care and attention that Dr. Herrin established.” Mr. Stout continued, “I’m grateful to have joined with CareTrust REIT, and appreciate the pragmatic and operator-sensitive mindset they brought to the transaction."
The 455-bed Illinois skilled nursing portfolio consists of 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.
The investment is scheduled to generate initial annual rent of $2.9 million, for an initial cash yield of 10.0%. The new master lease carries an initial term of fifteen years, with two five-year renewal options and CPI-based rent escalators. CareTrust REIT funded the acquisition with cash on hand.
About CareTrust REITTM
CareTrust REIT, Inc. is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition and leasing of seniors housing and healthcare-related properties. With 158 net-leased healthcare properties and three operated seniors housing properties in 21 states, CareTrust REIT is pursuing opportunities across the nation to acquire properties that will be leased to a diverse group of local, regional and national seniors housing operators, healthcare services providers, and other healthcare-related businesses. More information about CareTrust is available at www.caretrustreit.com.