Sabra Health Care REIT announced the acquisition on December 14 of a nine-facility senior housing portfolio with a total of 322 units located throughout the State of Michigan for $49.0M. Concurrently with the purchase, we entered into a triple-net master lease agreement with affiliates of Retirement Living Management. The lease has an initial term of 10 years with two five-year renewal options and provides for annual rent escalators equal to the greater of the change in the Consumer Price Index or 3.0%, resulting in annual lease revenues determined in accordance with GAAP of $4.5M and an initial yield on cash rent of 8%. The purchase price was funded with available cash and proceeds from our secured revolving credit facility. In addition, Sabra will have a right of first refusal to acquire an additional facility operated by Retirement Living and add such facility to the master lease.
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