IRVINE, Calif.--(BUSINESS WIRE)--Sabra Health Care REIT, Inc. (“Sabra”) (Nasdaq: SBRA) today announced the acquisition of a 100-unit senior housing facility in Augusta, Georgia and a former senior housing facility in Gulf Breeze, Florida for an aggregate purchase price of $28.5 million.

On March 5, 2021, Sabra completed the acquisition of a 100-unit assisted living and memory care facility, The Claiborne at West Lake, located in Augusta, Georgia. The community opened in late 2018 and was nearly 90% occupied at the time of the transaction. The transaction was underwritten with an initial cash yield of nearly 8.0%, and features an earnout opportunity for the seller after twelve months. Simultaneously with the acquisition, Sabra entered into a management agreement with Claiborne Senior Living, the incumbent manager, to continue managing the property.

On March 15, 2021, Sabra completed the acquisition of a vacant senior housing facility located in Gulf Breeze, Florida. Sabra will fund up to $3 million of construction cost to convert the facility into a 60-bed addiction treatment center. Simultaneously with the acquisition, Sabra added the facility to an existing triple net master lease with Landmark Recovery. The lease has an initial 15-year term and an initial cash yield of 9.0% escalating annually at the greater of CPI or 2.0%. Landmark Recovery currently leases 5 addiction treatment facilities from Sabra.

“These transactions show Sabra’s commitment and ability to creatively structure accretive investments for our shareholders. We are very excited to begin a new relationship with Claiborne Senior Living and to expand our already successful relationship with Landmark Recovery,” said Talya Nevo-Hacohen, Sabra’s Chief Investment Officer.

About Sabra

Sabra operates as a self-administered, self-managed real estate investment trust (a “REIT”) that, through its subsidiaries, owns and invests in real estate serving the healthcare industry throughout the United States and Canada.

Sabra Health Care REIT Acquires a 100-Unit Senior Housing Facility and a Former Senior Housing Facility to be Converted to an Addiction Treatment Center