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Commercial Real Estate
Business Observer Friday, Oct. 24, 2014 7 years ago

California REIT buys two Tampa area assisted-living facilities

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Sabra Health Care REIT Inc. purchased two Gulf Coast assisted-living facilities for $21.3 million. The Irvine, Calif.-based real estate investment trust purchased the 86-bed Delaney Creek Lodge in Brandon for $11.12 million and 85-bed West Winds Assisted Living Facility in Zephyrhills for $10.22 million.

BUYER: Sabra Health Care Holdings III LLC, Irvine, Calif.
SELLER: Delaney Creek Lodge PLL
PROPERTY: 320 S. Lakewood Drive, Brandon
PRICE: $11.12 million
PREVIOUS PRICE: $395,000, July 1998
SELLER: West Winds Prime LLC
PROPERTY: 37411 Eiland Blvd., Zephyrhills
PRICE: $10.22 million
LAW FIRM ON DEED: G. Michael Mackenzie PA, Dunedin

PLANS, DESCRIPTION:
Sabra Health Care REIT Inc. purchased two Gulf Coast assisted-living facilities for $21.3 million. The Irvine, Calif.-based real estate investment trust purchased the 86-bed Delaney Creek Lodge in Brandon for $11.12 million and 85-bed West Winds Assisted Living Facility in Zephyrhills for $10.22 million.

The combined price equated to $124,804 per bed.

The assisted-living facilities were acquired along with the Nature Coast Lodge in Lecanto in what Sabra Health Care described publically as the Rosecastle Portfolio. The three Florida facilities were
purchased for a total of $27.6 million and contain a combined 256 beds. All three are being leased in a triple-net 10-year rental agreement to an operator.

Sabra Health Care says the tenant is pursuing turning around operations of the Rosecastle Portfolio and says it has agreed to receive a share of the revenue until after the operations are improved. After that the REIT expects a cash rent yield of 9.7%.

As of June 30, Sabra owned 130 real estate properties, including 102 skilled nursing/post-acute facilities, 26 senior-housing facilities, and two acute care hospitals.

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