San Clemente, Calif.– CareTrust REIT, Inc. (NYSE: CTRE) has made a strategic move by acquiring two healthcare facilities in California, in two separate transactions totaling approximately $55 million.
These acquisitions are poised to strengthen the company’s portfolio in key healthcare real estate markets and enhance its relationships with top-tier operators.
Acquisition of Los Alamitos Skilled Nursing and Assisted Living Campus
On April 1, 2025, CareTrust finalized the acquisition of a prominent skilled nursing and assisted living campus located in Los Alamitos, California. This campus includes a 150-bed skilled nursing facility and a 140-bed residential care facility for the elderly. The deal was structured as a joint venture with a third-party healthcare real estate owner. CareTrust provided a combined common equity and preferred equity investment totaling roughly $34 million, yielding an initial contractual return of approximately 9.7% on its investments in the joint venture.
The Los Alamitos campus is now leased to affiliates of The Ensign Group (NASDAQ: ENSG) under a 15-year NNN lease agreement, which includes two 5-year extension options and annual escalators tied to the Consumer Price Index (CPI). CareTrust has expressed enthusiasm about partnering with Ensign Group once again, citing their strong track record in healthcare operations.
“We are excited to add two additional, solidly-performing facilities to our portfolio,” said James Callister, CareTrust’s Chief Investment Officer. “We are always excited to expand our relationship with affiliates of The Ensign Group as they bring their outstanding operating expertise to the employees, residents, and patients of this Los Alamitos community.”
Concord Residential Care Facility Acquisition
In addition to the Los Alamitos campus, CareTrust also acquired a 160-bed residential care facility for the elderly in Concord, California on March 1, 2025. The total…