Strawberry Fields REIT (STRW) Enters into Agreement to Acquire Six Healthcare Facilities in Kansas

Strawberry Fields REIT, Inc. recently disclosed in a Form 8-K filing a major development in its portfolio expansion plans. The real estate investment trust signed an Asset Purchase Agreement on December 20, 2024, with Bonner Springs Realco, LLC, Clearwater SNF Realco, LLC, Clearwater AL Realco, LLC, Fountainview Realco, LLC, Legacy on 10th Realco, LLC, and 1600 South Woodlawn Realty, LLC (collectively “Sellers”) for the acquisition of six healthcare facilities situated in Kansas.

These facilities, composing of five skilled nursing facilities and one assisted living facility containing a total of 354 licensed beds, will be purchased for $24 million. Upon closing, Strawberry Fields REIT plans to lease the properties under a new 10-year master lease agreement to a group of third-party tenants, operating the facilities with five skilled nursing facilities and one assisted living facility.

Under the terms of the Purchase Agreement, the Company made a deposit of $750,000 at signing towards the purchase price and intends to fund the remaining balance using its current working capital. The Company, in conjunction with its newly organized indirect subsidiaries, expects to complete the acquisition pending due diligence, regulatory, and closing conditions.

Strawberry Fields REIT also issued a press release on December 23, 2024, to announce the signing of the Purchase Agreement. The press release further outlined details of the acquisition, emphasizing the Company’s strategic move to expand its presence in the healthcare property sector.

The closing of the deal is anticipated before the year’s end, although it is subject to various conditions. Investors remain cautious yet optimistic, awaiting further updates on this potential acquisition.

The Company, led by Chief Executive Officer and Chairman Moishe Gubin, is looking to advance its presence in the healthcare real estate sector with this significant acquisition.

No updates were provided on the acquired company’s shares (STRW) following this announcement. For further insights and financial details, interested parties are directed to consult the original Form 8-K filing on the SEC’s EDGAR database.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Strawberry Fields REIT’s 8K filing here.

Strawberry Fields REIT Company Profile

Strawberry Fields REIT, Inc, is a self-administered real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing and certain other healthcare-related properties. The Company's portfolio includes 109 healthcare facilities with an aggregate of 12,449 bed, located throughout the states of Arkansas, Illinois, Indiana, Kentucky, Michigan, Ohio, Oklahoma, Tennessee and Texas.