IRVINE, Calif., March 5, 2014 (GLOBE NEWSWIRE) -- Sabra Health Care REIT, Inc. ("Sabra," the "Company" or "we") (Nasdaq:SBRA) (Nasdaq:SBRAP) announced today that it has exercised its option to purchase and completed the acquisition of two skilled nursing facilities with a total of 254 licensed beds for $24.5 million (the "Chai Acquisition"). The facilities are located in Colorado Springs, Colorado and Fort Pierce, Florida and have 147 and 107 beds, respectively. Sabra's option to buy these properties was obtained in connection with the $12.4 million mezzanine loan (the "Chai Mezzanine Loan") that Sabra originated in June 2013 with an affiliate of Chai Facilities Acquisition Company, LLC ("Chai"), the indirect owner of twelve skilled nursing facilities, with 1,689 licensed beds in seven states (the "Chai Portfolio"). The Chai Mezzanine Loan is secured by the borrower's equity interests in the entities that own the Chai Portfolio under which Sabra received an option to purchase up to $50.0 million of these facilities. At closing, $5.8 million of the sales proceeds were used to repay a portion of the Chai Mezzanine Loan, resulting in Sabra funding an additional $18.7 million for the acquisition and leaving $6.6 million outstanding under the Chai Mezzanine Loan. Sabra continues to have an option to purchase up to an additional $25.5 million of the remaining ten properties in the Chai Portfolio. Concurrently with the purchase, Sabra entered into a triple-net master lease agreement with affiliates of the seller. The lease has an initial term of 15 years with two 5-year renewal options and provides for an annual rent escalator equal to the greater of the change in the Consumer Price Index or 2.75%, resulting in annual lease revenues, determined in accordance with GAAP, of $2.8 million and an initial yield on cash rent of 9.5%. Commenting on the Chai Acquisition, Rick Matros, CEO and Chairman, said, "When we put the Chai deal together last year, we were looking forward to the opportunity it afforded on a go forward basis. The Chai Acquisition expands our relationship with the Lyric team, operators of the Chai facilities, beyond the two facilities we currently own in Texas. They are a strong, highly experienced team. We look forward to continuing this mutually beneficial relationship."