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CareTrust Funds $15.7M Mortgage Financing for Skilled Nursing Portfolio in Florida

DELAND, Fla. — CareTrust REIT Inc. (NYSE: CTRE) has funded a $15.7 million mortgage loan on a two-asset, 115-bed skilled nursing portfolio in Florida. 

The borrowers under the loan are affiliates of Elevation Group LLC, a Florida-based skilled nursing operator led by industry veterans Ken and Dan Funk. Elevation is an existing tenant of CareTrust.

Proceeds of the loan were used to refinance Elevation’s existing loan on its Athens Post Acute facility, as well as to partially fund Elevation’s acquisition of Blue Lake Post Acute, both located in Deland, approximately 35 miles north of Orlando. 

Prior to loan closing, Elevation had been operating the Blue Lake facility under a lease agreement with a third-party landlord. Elevation elected to exercise its purchase option and acquire the facility. 

The loan is secured by a first-priority lien on the borrowers’ ownership interest in the real estate and carries a five-year maturity with one five-year extension and an annual interest rate of 9 percent. During the extension term, the annual interest rate escalates by 25 basis points each year.

CareTrust currently leases one skilled nursing facility in Georgia to Elevation, which was the start of the two companies’ relationship in May of this year.

The investments were funded using proceeds from CareTrust’s $600 million unsecured revolving credit facility as well as cash on hand. As of July 18, 2023, the Company had $310 million outstanding on the unsecured revolving credit facility.

The post CareTrust Funds $15.7M Mortgage Financing for Skilled Nursing Portfolio in Florida appeared first on Seniors Housing Business.

Source: Senior Housing Business

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