Sabra Acquires Michigan Senior Housing Portfolio for $49 Million

Sabra Health Care REIT, Inc. (NASDAQ:SBRA) recently announced the acquisition of a nine-property portfolio of senior housing communities located in Michigan for $49 million.

The sale/leaseback transaction includes a triple-net master lease agreement with affiliates of Retirement Living Management, featuring a 10-year initial term with two five-year renewal options. The lease provides for annual rent escalators equal to the greater of the change in the Consumer Price Index or 3.0%, resulting in annual lease revenues determined in accordance with GAAP or $4.5 million and an initial yield on cash rent of 8.0%.

Sabra will also have right of first refusal to acquire an additional facility operated by Retirement Living Management and add that facility to the master lease agreement as well.

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“These are beautiful resident-centric physical plants built to suit today’s higher-needs assisted living resident,” said Rick Matros, Sabra CEO and chairman, in a statement. “The assets are relatively new, with all but two built in the last 10 years by the Retirement Living team.”

The portfolio has a total of 322 units. Boulder, Colo.-based Evans Senior Investments represented Retirement Living in the transaction.

Written by Alyssa Gerace

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