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.
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