Subsequent Events

12 Months Ended

Dec. 31, 2019

Subsequent Events [Abstract]

Subsequent Events

SUBSEQUENT EVENTS

The Company evaluates subsequent events in accordance with ASC 855, Subsequent Events. The Company evaluates subsequent events up until the date the consolidated financial statements are issued.

Recent Acquisitions

In January 2020, the Company acquired one skilled nursing facility for approximately $18.7 million, which includes estimated capitalized acquisition costs. The facility was leased to an affiliate of the operator which developed the property, Cascadia Healthcare, LLC. The contractual initial annual cash rent from the acquisition is approximately $1.7 million. The acquisition was funded using borrowings under the Company’s Revolving Facility, cash on hand and a credit for the Company’s original equity investment in the facility and preferred returns thereon. See Note 4, Other Real Estate Investments, Net for further detail.

In February 2020, the Company acquired one assisted living facility for approximately $7.4 million, which includes estimated capitalized acquisition costs. The facility was leased to an affiliate of Bayshire, LLC. The contractual initial annual cash rent from the acquisition is approximately $0.6 million. The acquisition was funded using borrowings under the Company’s Revolving Facility and cash on hand.

Amended Agreements

In January 2020, the Company amended its loan agreement secured by mortgages on the three skilled nursing facilities sold to CommuniCare, as discussed in Note 3, Real Estate Investments, Net. The amended agreement has a new maturity date of April 30, 2020. See Note 4, Other Real Estate Investments, Net for further detail.

Asset Sales

On February 14, 2020, the Company closed on the sale of the six Metron skilled nursing facilities which were held for sale as of December 31, 2019. In connection with the sale for $36.0 million, the Company received $3.5 million in cash and provided subsidiaries of Cascade Capital Group, LLC, the purchaser of the properties, with a short-term mortgage loan secured by these properties for $32.4 million.  The mortgage loan bears interest at 7.5% and has a maturity date of March 31, 2020.  The Company does not expect to record a material gain or loss in connection with the sale.