San Clemente-based health care real estate investment trust, CareTrust REIT (Nasdaq: CTRE), announced the acquisition of four rental continuing care retirement communities (CCRC) in Southern California, including one in Rancho Mirage, as well as a new operator relationship.
The Rancho Mirage campus was developed in 2000 by Marriott International.
CareTrust’s initial investment in the four communities is estimated at $126.1 million, including capital expenditure commitments. The deal was funded through the REIT’s $600 million unsecured revolving credit facility.
Escondido-based Bayshire Senior Communities assumed management of the Rancho Mirage campus and rebranded it as Bayshire Rancho Mirage. CareTrust added it to the operator’s existing master lease. The community was among four sold by Brookdale Senior Living (NYSE: BKD) as part of its ongoing portfolio optimization initiative.
As an existing CareTrust tenant, based in San Diego, Bayshire Senior Communities will lease and operate the Rancho Mirage and Carlsbad campuses under an amendment to its existing master lease.
“We are excited to grow here in San Diego, and to expand into the demographically-attractive Coachella Valley,” says Scott Kirby, CEO of Bayshire. “The CareTrust team exceeded our expectations, not only as a capital provider but also as thought partners in how to structure a deal to mitigate the risks of taking over healthcare operations during COVID.”