Close

Sabra (SBRA) Acquires Senior Housing Facility Portfolios from Life's Journey, Radiant

September 28, 2015 10:31 AM EDT

Sabra Health Care REIT (NASDAQ: SBRA) announced two investments: the acquisition of a portfolio of five senior housing facilities located in Illinois, and the acquisition of a portfolio of four senior housing facilities located in Oregon and Washington. The transactions were funded with available cash and proceeds from our revolving credit facility.

Life's Journey Senior Living Portfolio

On September 1, 2015, we acquired five senior housing facilities with 149 primarily memory care beds/units (collectively, the "Life's Journey Senior Living Portfolio") located in Illinois for $19.7 million. Concurrently with the purchase, we entered into a triple-net master lease agreement with Life's Journey Senior Living for the portfolio. The lease has an initial term of 10 years with two 5-year renewal options and provides for an annual rent escalator equal to the greater of (i) the Consumer Price Index and (ii) 3.0%, resulting in annual lease revenues, determined in accordance with GAAP, of $1.7 million and an initial yield on cash rent of 7.5%.

Radiant Senior Living Portfolio

On September 17, 2015, we acquired four senior housing facilities with 196 assisted living units and 18 independent living units (collectively, the "Radiant Senior Living Portfolio") located in Oregon and Washington for $65.0 million. Concurrently with the purchase, we entered into a triple-net master lease agreement with Radiant Senior Living. The lease has an initial term of 10 years with two 5-year renewal options and provides for an annual rent escalator of 3.0%, resulting in annual lease revenues, determined in accordance with GAAP, of $5.0 million and an initial yield on cash rent of 6.75%.

Commenting on these investments, Rick Matros, CEO and Chairman, said, "These acquisitions represent new markets for Sabra and align us with two new operating partners: Radiant Senior Living and Life's Journey Senior Living. In both cases, we have been working for some time to find properties with these operators that make sense. It represents the time that our team invests in developing relationships with operators. Some opportunities occur quickly, others may take several years but we take pride in being patient and nurturing relationships with operators we want to grow with. This brings our year to date investments to $443 million with an average weighted yield of 7.7%."



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Corporate News, Management Comments, Mergers and Acquisitions

Related Entities

Definitive Agreement