NEW YORK — Newcastle Investment Corp. (NYSE: NCT) has purchased a portfolio of six seniors housing communities for $186 million. The portfolio was purchased with unrestricted cash.
The six rental continuing care retirement communities in the portfolio are all located in Texas and consist of a total of 1,265 beds.
Concurrent with the acquisition, Newcastle has entered into a triple-net master lease agreement with a subsidiary of Lifecare Cos. LLC. The lease has an initial term of 15 years with two 5-year renewal options. The initial cash lease yield is 7.6 percent with 3.75 percent increases in years two to four and 2.5 percent in years five to 15.
Lifecare Cos., established in 1971, is a manager of continuing care retirement communities throughout the United States.
Newcastle has invested more than $700 million of equity in the past 24 months to acquire 95 seniors housing properties with more than 11,900 beds, totaling more than $1.8 billion in assets. The company is managed by an affiliate of Fortress Investment Group LLC.
Newcastle also recently created a spin-off company, New Senior Investment Group Inc. (NYSE:SNR), a publicly traded REIT focused on the seniors housing sector.
The stock price of Newcastle closed at $4.79 per share on Monday, June 30, down from $5.23 per share on Friday, June 28, 2013.
— Scott Reid