Rick MatrosIRVINE, CA– Sabra Health Care REIT is under contract to sell a portfolio of 36 skilled nursing and two senior housing facilities operated by Senior Care Centers for $385 million. Senior Care Centers filed for Chapter 11 bankruptcy relief this week and has said it intends to keep all of its facilities operating.
During the third quarter, Sabra REIT issued to Senior Care Centers notices of default and lease termination due to non-payment of rent. Senior Care Centers is currently operating the facilities on a month-to-month basis.
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Sabra expects to complete the portfolio sale in early 2019.
The purchase price of $385 million is slightly higher than the $377.5 million upfront portion of the purchase price previously announced, CEO and Chairman Rick Matros said.
“We determined it was in our best interest to forego a potential earn-out opportunity that may or may not be realized at some future date and instead receive more cash up front.” He added that the REIT doesn't expect Senior Care Centers' bankruptcy filing “to have a substantive impact on its disposition of the Senior Care Centers facilities.”
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
