Senior Housing Acquisition and Investment Round-Up (9/30/2012)

Here’s a collection of some smaller acquisitions and investments made in the past few days by senior healthcare providers and investors. 

Ensign Acquires Two California Senior Care Facilities 

The Ensign Group, Inc. (NASDAQ:ENSG) recently announced the acquisition of Atlantic Memorial Healthcare Center, a 104-bed skilled nursing facility, and Shoreline Healthcare Center, a 75-bed skilled nursing facility, both located in Long Beach, Calif. 

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Both communities have been operated by Ensign subsidiaries since July 2002 under leases with an option to purchase.

“These purchases reflect our deep and long-term commitment to these two communities in particular, and to the state of California generally,” said Christopher Christensen, Ensign’s President and CEO. 

Ensign made the purchases with cash, bringing its portfolio to 107 healthcare facilities, 85 of which are Ensign-owned; four hospice companies; and six home health businesses across 11 states. 

Aviv REIT Acquires Ky. Senior Care Center for $9.9 Million

Aviv REIT recently acquired a post-acute and long-term care skilled nursing center in Louisville, Ky. for $9.9 million.

Long-term care services provider Advocat Inc. (NASDAQ:AVCA) entered a lease agreement with the Chicago-based real estate investment trust to operate the 154-bed senior care community.

“This acquisition was an opportunity to acquire a quality care center that recently underwent a $3 million renovation and we are also pleased to further diversify our portfolio by entering into a new state,” said Craig Bernfield, CEO and president of Aviv. “We look forward to growing our relationship with Advocat.”

The lease features an initial 15-year term with a five-year renewal option. The nursing center has annual revenues of approximately $10 million and is expected to be accretive to earnings early in Advocat’s tenure as operator. 

“A major focus of our strategic operating initiatives has been on portfolio growth,” said Kelly Gill, Advocat’s president and CEO. “This lease agreement represents our third nursing center addition in less than one year. The acquisition of Highlands Nursing and Rehabilitation Center in Louisville, Kentucky increases the Company’s footprint in Kentucky to eight nursing centers. As we have become more active in our portfolio-growth strategy, our pipeline continues to grow and I am optimistic that we can reasonably expect to see more facility additions in the near future.” 

REIT Acquires 2 Senior Care Communities for $23.5 Million

Cornerstone Core Properties REIT recently acquired two senior care properties though a joint venture in two transactions totaling $23.5 million.

The first is an $8.5 million transaction involving a 71-bed memory care facility in Medford, Ore.

The second is a $15 million deal for a 150-bed skilled nursing center in Galveston County, Tex.

Both properties were acquired through sale/leaseback transactions and are leased under 10-year triple-net leases. Cornerstone Core Properties REIT acquired a 95% interest in the properties through joint venture entity Cornerstone Healthcare Partners, LLC. The joint venture partner, Cornerstone Healthcare Real Estate Fund, acquired the remaining 5% interest.

“We are excited about both transactions. Both operators have proven to be industry leaders with an ability to provide high levels of care while maintaining high occupancy rates,” said Kent Eikanas, President and Chief Operating Officer of Cornerstone Core Properties REIT, Inc.

GE Capital’s Healthcare Financial Services provided debt financing for the deals. 

Rittenhouse Senior Living Sells Ohio Senior Care Community

Rittenhouse Senior Living, based in Wayne, Pa., recently sold its only Ohio property to a Louisville-based provider for an undisclosed sum, reports the Dayton Business Journal.

Rittenhouse Senior Living of Middletown is a 61-unit assisted living and memory care community in Middletown, Ohio. The property is valued at $1.56 million, according to the Butler County Auditor. 

The former owner said his company plans to focus its investment efforts in states where it owns more properties, according to the article. 

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