Sabra Health Care REIT Inc. (
, a real estate investment trust (REIT), recently acquired a
48-unit memory care facility in Aurora in the Denver Metropolitan
area in Colorado. The facility was acquired from an affiliate of
New Dawn Holding Company for $16.0 million. The transaction was
funded with available cash.
HEALTH CR REIT (HCN): Free Stock Analysis
SABRA HEALTHCR (SBRA): Free Stock Analysis
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In addition to the deal, Sabra Health Care also entered into a
triple-net lease agreement with the affiliates of New Dawn, under
which the tenant will pay all taxes, insurance, and maintenance for
the property, in addition to rent. The 10-year lease includes a
fixed annual rent escalation of 3.0% and two five-year renewal
options. Sabra Health Care was also granted a right of first
refusal for the acquisition of a new memory care facility being
built in Sun City West, Arizona.
The strategic move is aimed to extend its presence in the senior
housing memory care segment. The acquired facility provides high
quality services and targets a population which has a demand for
newly developed technologies. The company's strategy of
diversifying its portfolio is backed by a dedicated management
team. During the six months ended June 30, 2012, the company
acquired six skilled nursing facilities for $55.6 million.
Based in Irvine, California, Sabra Health Care through its
subsidiaries owns and invests in real estate for the healthcare
industry. The company leases properties to tenants and operators
throughout the United States. As of September 20, 2012, Sabra
Health Care's properties were located in 25 states and included
11,440 licensed beds.
Sabra Health Care currently retains a Zacks #3 Rank, which
translates into a short-term Hold rating. We also have a long-term
Neutral recommendation on the stock. One of its competitors,
Health Care REIT, Inc. (
also holds a Zacks #3 Rank.