Heavenrich & Company Arranges Sale-Leaseback of Two Northeast Skilled Nursing Facilities with Sabra Health Care REIT

April 11, 2012 - Heavenrich & Company, Inc. announced the sale of two Northeast skilled nursing facilities to Sabra Health Care REIT, Inc. (NASDAQ:SBRA). Sabra acquired the 120 licensed-bed portfolio for $29.85 million.  Simultaneously with the acquisition, Sabra leased the facilities back to affiliates of the seller under a master lease.

Heavenrich & Company, a senior housing investment brokerage company, was retained by the seller to explore various capital options. “While the reimbursement environment in general has been turbulent, the seller filled a unique and valuable niche. The seller offered CMS a low cost alternative setting that resulted in significant savings,” said Adam Heavenrich, Managing Director of Heavenrich & Company.

Rick Matros, Sabra’s Chairman and CEO, stated, "The primary source of revenue is state-funded Medicaid and Managed Care through specialized rates for ventilator and other complex conditions. States are recognizing that there needs to be an alternative to the acute-care setting for these patients and the cost is appreciably less in the skilled nursing setting than in any other institutional setting. Most importantly, this management team takes a programmatic approach to provide quality outcomes to the population it serves, which is what truly is important to both the state and the managed care companies.”

In connection with the acquisition, Sabra, through an indirect, wholly-owned subsidiary, entered into a single 15-year triple-net master lease agreement with affiliates of the sellers with two five-year renewal options. The two-property portfolio lease provides for annual rent escalators equal to the greater of the change in the Consumer Price Index or 2.5%, resulting in annual lease revenues determined according with GAAP of $3.4 million and an initial yield of cash rent of 9.5%.

About Sabra Health Care REIT, Inc.
Sabra Health Care REIT, Inc., a Maryland corporation, is a self-administered, self-managed real estate investment trust. Sabra’s shares are traded on NASDAQ and Sabra has a market capitalization of approximately $600 million. As of December 31, 2011, Sabra’s portfolio included 97 senior housing properties. As of December 31, 2011, Sabra’s 97 properties had a total of 10,877 licensed beds, or units, spread across 23 states. 

About Heavenrich & Company
Heavenrich & Company is a boutique investment brokerage company dedicated to the senior housing industry since 1994.