SAN CLEMENTE, Calif.–(BUSINESS WIRE)–CareTrust REIT, Inc. (NYSE:CTRE) announced today that it has acquired a 136-unit, two-facility memory care portfolio located in the greater Chicago metropolitan area.
The facilities will be operated by affiliates of Chapters Living, LLC, a new operator relationship for CareTrust. Chapters Living is a seniors housing and memory care operator based in the Midwest led by industry veteran Danny Stricker. Chapters took over operations at the facilities from the outgoing operator on May 1, 2023 pursuant to a 15-year NNN master lease agreement. The agreement includes two, 5-year extension options as well as annual CPI-based rent escalators. “Chapters Living’s commitment to improving the lives of seniors and delivering customized care make them a great fit for these facilities,” remarked James Callister, CareTrust’s Chief Investment Officer. “Danny and his team have a tremendous amount of operating experience and we are excited to continue to find opportunities to continue to work together in the future,” added Mr. Callister.
Commenting on Chapter Living’s positive experience with CareTrust, Chapter Living’s Co-Founder and President Danny Stricker stated, “CareTrust’s transaction and operations experience and reputation have been highly beneficial in facilitating our early growth efforts and are an ideal relationship for us in making the Chapters Living story a success.” Eric Gillis, CareTrust’s SVP Investments also stated that, “We are excited to kick off our relationship with such a high-quality operator and we hope to continue to grow with Chapters Living.”
CareTrust’s initial investment in the facilities, inclusive of transaction costs, was approximately $18.2 million. The acquisition was funded using proceeds from the Company’s $600 million unsecured revolving credit facility and provides for initial annual base rent of $1.71 million with rent being abated for the first three months.
About CareTrustTM
CareTrust REIT, Inc. is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing, seniors housing and other healthcare-related properties. With a nationwide portfolio of long-term net-leased properties, and a growing portfolio of quality operators leasing them, CareTrust REIT is pursuing both external and organic growth opportunities across the United States. More information about CareTrust REIT is available at www.caretrustreit.com.
Contacts
CareTrust REIT, Inc., (949) 542-3130, ir@caretrustreit.com
