Care Investment Trust announced its subsidiary, Care YBE Subsidiary, purchased 12 senior housing facilities from affiliates of Eby Realty Group for $100.8 million. The 12 assisted living, independent living and Alzheimer’s facilities are located in Illinois, Indiana, Iowa and Nebraska.
An affiliate of Bickford Senior Living Group master-leased the facilities from Care YBE for 15 years with four 10-year renewal options. Bickford is managing the 12-property portfolio.
F. Scott Kellman, president and chief executive officer of Care, is pleased with the transaction. “Bickford’s dedication to quality care has garnered the Eby family an unparalleled reputation in senior housing,” Kellman says. “We are extremely gratified that the Ebys have chosen to partner with Care to drive their growth strategy.”
Care funded the investment with cash and approximately $74.6 million of mortgage financing from Fannie Mae. These mortgages will mature in 7 years, are interest-only for the first year and carry a fixed annual interest rate of 6.845 percent. Red Mortgage Capital arranged the financing with Fannie Mae.
The portfolio contains five facilities in Illinois, one facility in Indiana, five facilities in Iowa and one facility in Nebraska. The properties were all constructed in the last 11 years, with six of the facilities built in the last 5 years. The properties are poised for success within their communities and have experienced aggregate occupancy levels in excess of 90 percent over the last 2 years.
Joe Eby, chief operation officer of Bickford, is looking forward to this collaboration. “We at Bickford Senior Living are extremely excited to form this partnership,” Eby says. “The completion of this transaction and the relationship with Care is integral in our desire for continued growth and to continue our mission of enriching happiness in the lives of our residents and families.”
— John Nelson