Sabra Health Care REIT has amended its master lease with tenant Avamere Group, a West Coast operator of skilled nursing facilities and seniors housing. Avamere’s annual base rent has been reduced 30% to $30.7 million, and Irvine-based Sabra has the opportunity to recapture the rent reduction as the portfolio’s performance improves.
Rick Matros, CEO and chairman of Sabra, said, “The combination of tight rent coverage on our portfolio prior to the COVID pandemic coupled with the unprecedented challenges of the past two years on Avamere’s overall operations necessitates a restructuring of our master lease. Importantly, this restructuring provides valuable breathing room to Avamere, while preserving optionality for Sabra to participate in operating upside.”
Avamere is expected to fund a security deposit over the first 20 months of the newly amended lease. It has paid past due rent for December 2021 and has agreed to pay January rent by March 25.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).
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