Sabra Health Care REIT, Recovery Centers of America to Expand Partnership

Sabra Health Care REIT this week announced that it intends to expand its partnership with Recovery Centers of America by providing a $325 million mortgage loan secured by 8 inpatient addiction treatment centers.

Based in Maryland, Sabra operates a self-administered, self-managed real estate investment trust that owns and invests in healthcare industry real estate throughout the United States and Canada. The mortgage loan, which is expected to close in the 4th quarter of 2021, will bear interest at 7.5% per year, with an initial 5-year term. Sabra will have a right of first offer to acquire the facilities should RCA decide to sell any of them.

The financing would be Sabra’s second transaction with RCA. Previously, Sabra acquired and funded the redevelopment of a property in Pittsburgh that is now being lease to RCA, operating as Recovery Centers of America at Monroeville.

“We are pleased to work with the RCA team in the first step to recapitalize RCA as it looks forward to continued growth in existing and new markets,” Sabra chief investment officer Talya Nevo-Hacohen said in a news release. “Sabra’s investment in Recovery Centers of America at Monroeville was an early investment that has allowed us to witness RCA’s team and approach firsthand. Based on that experience, we see the mortgage loan as a strategic investment in RCA and underscores Sabra’s commitment to the behavioral health sector.”