CareTrust REIT Acquires Mira Vista Care Center for $9.1M

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CareTrust REIT, Inc.
CTRE
today announced that it has acquired Mira Vista Care Center, a 94-bed skilled nursing facility located in Mount Vernon, Washington, for $9.1 million. In connection with the acquisition, CareTrust entered into a triple-net lease with Five Oaks Healthcare, LLC, which took over operations effective April 1, 2015. The acquisition was sourced by Five Oaks principals Jay Brady and Brian Newberry, who sought out CareTrust for sale-leaseback financing. In a joint statement, Messrs. Brady and Newberry said, "We are pleased to commence our business relationship with the CareTrust team, a financing partner that truly understands the complexities of today's skilled nursing and post-acute care environment." Commenting on the core objective of their new joint venture, they added, "Together we can leverage our complementary capabilities to spread our mutual philosophy of delivering the highest quality of care to patients and their families throughout the Northwest." Greg Stapley, CareTrust's Chairman and Chief Executive Officer, noted that Messrs. Brady and Newberry are highly-experienced, well-known and well-regarded healthcare operators. "We have known and respected Jay and Brian since our operating days," he said. "We look forward to growing our footprint in the Northwest with the Five Oaks team, as they establish themselves as one of the highest-quality health care providers in the Pacific Northwest, just as they have done elsewhere," he added. The Mira Vista acquisition is CareTrust's sixth announced transaction and second skilled nursing acquisition since its first investment in November 2014. The investment generates an initial cash yield of 9.50% on EBITDAR lease coverage of 1.26x, producing initial annual lease revenue of just over $865,000. The lease has an initial term of 15 years with two five-year extensions and CPI-based rent escalators.
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