The Ensign Group (NASDAQ: ENSG) has acquired the Springs at Pacific Regent in La Jolla, Calif., a medicare skilled nursing facility for an undisclosed sum.
“This is a strategic acquisition that adds to our growing portfolio in the important San Diego County market,” said Covey Christensen, President of Ensign’s Southern California-based Flagstone Group, a subsidiary of which will operate The Springs. “We are especially pleased to be joining La Jolla’s vibrant and well-regarded healthcare community,” he added.
The Springs at Pacific Regent La Jolla is part of a larger community that includes Pacific Regent Tower, an upscale 21 story 55+ independent living condo project. The acquisition included an undeveloped one-acre parcel adjacent to the facility that has received conditional approval for a second 21-story residential tower.
Christensen said that Ensign is considering alternatives for the eventual development of the parcel, noting that it is located in a highly desirable market with a limited supply of developable real estate.
At the time of acquisition, the skilled nursing facility had an occupancy rate of approximately 72% and is expected to be operationally accretive to earnings in 2011. An Ensign holding subsidiary purchased The Springs with cash.
Written by John Yedinak