Sabra Health Care Closes on Senior Care of Onion Creek

Nov 6, 2014

Irvine, CA-based Sabra Health Care REIT acquired Senior Care of Onion Creek (Onion Creek) in Austin, TX from Healthcare Services Group for $14 million, or approximately $112,000 per bed

The 125-bed skilled nursing facility opened in 2011 and is operated by Senior Care Centers. With the acquisition, Sabra assumed the lease, which has 10 years remaining on its initial term with three five-year renewal options escalating by 2.75% annually. The results of the lease equates to annual revenues determined in accordance with GAAP of $1.4 million and an initial yield on cash rent of 9%

Sabra reported that the company had entered into an $11 million mortgage loan agreement secured by a first trust deed on Onion Creek with affiliates of Meridian Equity Investors, L.P. Upon acquiring Onion Creek, approximately $11 million of the proceeds were used to repay the Onion Creek mortgage loan, resulting in Sabra funding an additional $3 million for the acquisition

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