Business
Sabra Health Care REIT, Inc. Closes on Previously Announced RCA Mortgage Loan and an Additional Investment; Transitions Three Skilled Nursing Facilities to Affiliates of The Ensign Group
IRVINE, Calif.--(BUSINESS WIRE)-- Sabra Health Care REIT, Inc. (“Sabra,” the “Company” or “we”) (Nasdaq: SBRA) today announced the closing of two investments
About this update from Sabra Health Care Reit, Inc.
[{"type":"text","content":" IRVINE, Calif.--(BUSINESS WIRE)--\nSabra Health Care REIT, Inc. (“Sabra,” the “Company” or “we”) (Nasdaq: SBRA) today announced the closing of two investments and the transition of three facilities to affiliates of The Ensign Group.\n\nRCA Mortgage Loan\n\nOn October 15, 2021, Sabra closed on the first tranche of the previously announced $325 million mortgage loan, that when fully funded, will be secured by eight inpatient addiction treatment centers operated by Recovery Centers of America Holdings, LLC (“RCA”) located in the Northeast and Midwest regions of the US (the “RCA Mortgage Loan”). The first tranche, totaling $290 million, is secured by six of the eight addiction treatment centers. Funding of the $35 million second tranche, which would be secured by mortgages against the remaining two centers, is contingent upon the remaining two centers satisfying certain minimum debt service coverage requirements. The remaining terms of the RCA Mortgage Loan are consistent with those previously disclosed by us. RCA is the leading nationally branded, neighborhood-based provider of inpatient and outpatient substance abuse treatment services for individuals with drug and alcohol addiction, and co-occurring behavioral health disorders in the U.S.\n\nJasper Sale Leaseback\n\nOn October 1, 2021, Sabra completed the acquisition of a 113-unit senior housing property for $26.3 million from Legacy Living and immediately entered into a long-term triple net lease with an affiliate of seller. The state-of-the-art property located in Jasper, Indiana opened in 2019 and spans the continuum of care encompassing 18 independent living cottages, 70 assisted living units and 25 memory care units. The lease has an initial term of 15 years with two 5-year extension options. The initial lease rate is 6.93%, with annual escalators based on CPI with a floor of 2.25% and ceiling of 3.0%. The property is currently 94% occupied with initial lease coverage of 1.20x. Sabra will also have the option to purchase an additional 24 independent living cottages at cost, after receipt of the certificate of occupancy and would add the additional cottages to the lease at the then effective lease rate.\n\nEnsign Transition\n\nOn October 1, 2021, Sabra completed the transition of three skilled nursing facilities, previously leased to two separate operators, to affiliates of ...