Avamere Exits Skilled Nursing Sector in Major 26-Property Portfolio Shift
Avamere is divesting from the skilled nursing industry, transitioning 26 properties owned by Sabra Healthcare REIT to new operators. Learn the full details here.
Avamere Departs Skilled Nursing Operations
Avamere, a prominent senior housing operator, is officially winding down its involvement in the skilled nursing sector. The company, which previously separated its senior living assets into the entity Arete Living in 2022, is now moving to exit its management agreements for 26 distinct properties currently owned by Sabra Healthcare REIT (Nasdaq: SBRA).
Reassigning the Portfolio to New Operators
Under the terms of the transition, Sabra Healthcare REIT is redistributing these 26 facilities to ensure operational continuity. Specifically, 22 of the properties will be transferred to Cascadia Healthcare, while the remaining four will be managed by subsidiaries of an existing, nationally recognized leader in the skilled nursing field. As part of this realignment, Sabra has established the closing rent for the Cascadia-managed portion of the portfolio at $53 million. The entire transition is expected to reach completion within the current calendar year.
Strategic Cooperation and Leadership Vision
Sabra CEO Rick Matros emphasized the collaborative nature of this shift. According to Matros, the move originated from outreach earlier this year by Avamere founder Rick Miller, who expressed a clear strategic objective to exit the skilled nursing business entirely. Matros praised the high level of coordination between all parties, noting that the transition has been meticulously planned to minimize disruption for residents and staff alike. While Avamere maintains a portfolio of 57 locations on its website—including Ovation properties under the Arete Living umbrella—the company has not yet provided further details regarding its long-term operational strategy following this divestment.
The Evolution of Arete Living
This move follows the 2022 decision to spin off Arete Living to serve as a specialized senior living platform. Led by President Sarah Spreitler-Silva, the spinoff initially launched with 28 communities across seven states. A central component of this strategy was the Ovation brand, introduced in 2018 to offer an "active lifestyle village" model. This concept intentionally avoided skilled nursing, focusing instead on independent living, villas, and advanced resident technology. As of early 2025, Arete Living has expanded its footprint to 31 properties across six states and continues to scale its operations through recent acquisitions and active recruitment efforts in regions such as Oregon and New Mexico.
Recent Developments
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Related Topics
🔹 Skilled Nursing News 🔹 REIT Management 🔹 Senior Housing Industry 🔹 Healthcare Real Estate 🔹 Operational Transitions 🔹 Assisted Living Trends 🔹 Corporate Restructuring
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Frequently Asked Questions
Why is Avamere leaving the skilled nursing business?
Avamere founder Rick Miller initiated the move to exit the skilled nursing sector to refocus the company's long-term business strategy. This decision was communicated to Sabra Healthcare REIT earlier this year as part of a planned transition.
Who will manage the 26 properties previously under Avamere?
Sabra Healthcare REIT is reassigning 22 of the properties to Cascadia Healthcare. The remaining four will be managed by a national leader in the skilled nursing industry.
What happens to the Ovation properties managed by Arete Living?
Arete Living continues to operate as a separate entity from Avamere. The Ovation brand remains focused on active lifestyle independent living rather than skilled nursing, and the company has continued to expand its presence across multiple states.