Avamere Exiting Skilled Nursing Business After 26-Property Sabra REIT Transition

Senior housing operator Avamere is getting out of the skilled nursing business.

Avamere, which previously spun off its senior living holdings into senior living operator Arete Living in 2022, is transitioning out of management agreements for 26 properties owned by Sabra Healthcare REIT (Nasdaq: SBRA).

Sabra is reassigning 22 of the properties to Cascadia Healthcare and the other four to subsidiaries of an existing tenant that is a “national leader” in skilled nursing. With the transaction, Sabra is setting Cascadia’s closing rent at $53 million. The transaction is slated to close this year.

Transition details

“The Avamere transition has been well-planned and is benefiting from a high level of cooperation across the various parties involved, following outreach to Sabra earlier this year by founder, Rick Miller, who indicated a desire to exit the skilled nursing business,” Sabra CEO Rick Matros said in a press release about the move.

Avamere has 57 locations listed on its website, including Ovation properties managed by its former spinoff, Arete Living, and it’s not clear how the operators will move forward with the change at Sabra.

A representative for Avamere didn’t immediately respond to a request for more information Tuesday.

Company background

Avamere spun off Arete Living in 2022 with intentions for the platform to serve as its dedicated senior living arm. The spinoff started under the leadership of President Sarah Spreitler-Silva with 28 senior living communities across seven states, including the Ovation brand that Avamere built in 2018 and the years to come.

The company launched Ovation in an attempt to create an “active lifestyle village” for people of different ages and acuities. The brand combined lifestyle-oriented units like independent living and villas and a technology suite supporting residents. Notably, the original concept eschewed skilled nursing entirely despite existing as a micro version of a CCRC.

As of early 2025, Arete Living managed 31 properties across six states, following a five-community acquisition. Today, Arete Living is listed as the brand name on multiple properties, and the company has posted numerous job openings for Arete communities in states like Oregon and New Mexico throughout the month of July.

Andrew Christman is a reporter for Senior Housing News as part of WTWH Media, an avid reader and writer. He enjoys new book finds from his local library, and playing tabletop games with friends.