Sabra Health Care REIT Acquires Senior Housing Facilities
The REIT purchased a senior housing facility in Augusta, GA, and a former senior housing facility in Gulf Breeze, FL, which will be converted into an addiction treatment center.
Sabra Health Care REIT has acquired two senior housing facilities located in Augusta, GA and Gulf Breeze, FL, for an aggregate purchase price of $28.5 million.
Sabra acquired the Georgia property, a 100-unit assisted living and memory care facility, on March 5. The facility, the Claiborne at West Lake, opened in late 2018 and was nearly 90% occupied at the time of the transaction. The transaction was underwritten with an initial cash yield of nearly 8%, and features an earnout opportunity for the seller after 12 months.
Along with the acquisition of the Claiborne at West Lake, Sabra simultaneously entered into a management agreement with property’s current manager, Claiborne Senior Living, to continue managing the property.
The acquired Florida property is a former senior housing facility and will be converted into a 60-bed addiction treatment center. Sabra will fund up to $3 million of construction costs to convert the facility. The REIT acquired the property on March 15 and simultaneously added the facility to an existing triple-net master lease with Landmark Recovery.
The lease for the addiction treatment center has an initial 15-year term and an initial cash yield of 9% escalating annually at the greater of CPI or 2%. Landmark Recovery currently leases five addiction treatment facilities from Sabra.
“These transactions show Sabra’s commitment and ability to creatively structure accretive investments for our shareholders,” says Talya Nevo-Hacohen, chief investment officer at Sabra Health Care REIT.