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Other Real Estate Investments
6 Months Ended
Jun. 30, 2015
Real Estate [Abstract]  
Other Real Estate Investments
OTHER REAL ESTATE INVESTMENTS
In December 2014, the Company completed a $7.5 million preferred equity investment with Signature Senior Living, LLC and Milestone Retirement Communities. The preferred equity investment yields 12.0% calculated on a quarterly basis on the outstanding carrying value of the investment. The investment will be used to develop Signature Senior Living at Arvada, a planned 134-unit upscale assisted living and memory care community in Arvada, Colorado that will be constructed on a five-acre site. In connection with its investment, CareTrust obtained an option to purchase the Arvada development at a fixed-formula price upon stabilization, with an initial lease yield of at least 8.0%. The project is expected to be completed in early 2016.
During the three and six months ended June 30, 2015, the Company recognized $0.2 million and $0.5 million of interest income and this unpaid amount was added to the outstanding carrying value of the investment.