Senior Housing Investments & Acquisitions: Summit Healthcare REIT, Oxton

The Ensign Group Acquires Colo. Post-Acute Care Campus 

The Ensign Group, Inc. (Nasdaq:ENSG) acquired Riverwalk Post-Acute and Rehabilitation, a 60-bed skilled nursing operation; Rock Canyon Respiratory and Rehabilitation Center, an 81-bed skilled nursing operation with a subacute unit; and the Villas at Rock Canyon, a 17-bed independent living and assisted living operation.

Each of these operations is operated as part of a post-acute healthcare campus located in Pueblo, Colo. The acquisition, which includes the real estate that Ensign will retain, was effective Jan. 1.

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The Ensign Group is the parent company of the Ensign group of skilled nursing, rehabilitative care services, home health, home care, hospice care, assisted living and urgent care companies.

“We are thrilled to expand our footprint in Colorado and are excited to bring our affiliate’s extensive experience in operating subacute units in other markets to one of the only ventilator units in Colorado,” said Christopher Christensen, Ensign’s President and Chief Executive Officer, in a statement. 

Dave Jorgensen, president of Endura, the Ensign subsidiary responsible for operations in Colorado, expects these facilities, which had a combined occupancy rate of 74% at acquisition, to be accretive to earnings in 2015, he said.

This purchase, along with Ensign’s other acquisitions announced today, brings Ensign’s growing portfolio to 140 facilities, 11 hospice agencies, 13 home health agencies, two home care businesses and 15 urgent care clinics across 12 states. 

Ensign is actively seeking additional opportunities to acquire real estate or to lease both well-performing and struggling skilled nursing, assisted living and other healthcare related businesses across the United States, Christensen said.

The Ensign Group Acquires Texas Hospice Operation 

The Ensign Group, Inc. (Nasdaq:ENSG) acquired Hospice of the South Plains located in Lubbock, Texas and serving patients throughout the South Plains area of Northwest Texas. The acquisition was effective Dec. 31, 2014.

The Ensign Group is the parent company of the Ensign group of skilled nursing, rehabilitative care services, home health, home care, hospice care, assisted living and urgent care companies.

The agency will be held by Cornerstone Healthcare, Ensign’s home health and hospice-based portfolio subsidiary.

“We are excited to have the South Plains team join us, and are grateful for the outstanding foundation of quality care established there,” said Daniel Walker, Cornerstone’s President Chief Executive Officer, in a statement.

Walker expects the operations to be operationally accretive to earnings in 2015.

The Ensign Group Acquires Ariz. Home Health Operation

The Ensign Group, Inc. (Nasdaq:ENSG) acquired Alarys Home Health, a Medicare and Medicaid certified home health agency located in Scottsdale, Ariz. The acquisition was effective Jan. 1, 2015.

The Ensign Group is the parent company of the Ensign group of skilled nursing, rehabilitative care services, home health, home care, hospice care, assisted living and urgent care companies.

“We are pleased to expand our ability to provide the continuum of post-acute care needs in the Phoenix area,” said Christopher Christensen, Ensign’s President and Chief Executive Officer, in a statement. “Increasing coordination, cooperation, and communication between these new home health operations and our existing skilled nursing, assisted living, and hospice operations will improve outcomes and reduce rehospitalization rates for the patients who entrust us with their care.”

The agency will be held by Cornerstone Healthcare, Inc., Ensign’s home health and hospice operating company, and will be rebranded as “Emblem Home Health.”

Daniel Walker, Cornerstone’s President and Chief Executive Officer, said he expects the operations to be operationally accretive to earnings in 2015.

The Ensign Group Acquires Colo. Urgent Care Clinics

The Ensign Group, Inc. (Nasdaq:ENSG) acquired Integrity Urgent Care, consisting of two urgent care clinics located in Colorado Springs, Colo. The purchase was effective Jan. 1, 2015.

The Ensign Group is the parent company of the Ensign group of skilled nursing, rehabilitative care services, home health, home care, hospice care, assisted living and urgent care companies.

“Integrity Urgent Care presents the perfect opportunity for our urgent care operations to expand into a second market,” said Christopher Christensen, Ensign’s President and Chief Executive Officer, in a statement. 

Integrity Urgent Care, which was founded by Lori Japp, PA-C, has been operating for over seven years. Both of Integrity Urgent Care Clinics are Joint Commission accredited.

“We will be following the Ensign model – a lean decentralized operating philosophy where decisions are made by local leadership at the local level – and we are pleased that Lori Japp will continue to lead Integrity into the future,” said Michael Dalton, president of Immediate Clinic Healthcare, Inc., Ensign’s subsidiary for urgent care operations.

Senior Living Brokerage Firm Facilitates $2.7 Million Texas ALF Sale

Senior Living Investment Brokerage, Inc. facilitated the  $2,700,000 sale of an assisted living facility located in Tomball, Texas.

The 20,793 square foot facility consists of 37 units. The ALF was built in 1999, renovated in 2005 and is on over 4.3 acres of land. An Oregon owner/operator purchased the facility.

“The Tomball transaction allowed for the outgoing independent operator to exit the business and find a good fit for the community moving forward,” said Matthew Alley, Senior Living managing director, in a statement. 

Senior Living Brokerage Firm Facilitates $3.9 Million Fla. ALF Sale

Senior Living Investment Brokerage, Inc. facilitated the $3,900,000 sale of Atlantis Assisted Living, located in Lantana, Fla.

Featuring 53 units, the community was originally constructed as a nursing home, but was converted to assisted living in 2004. Senior Living procured eight competitive offers for the seller.

Bradley Clousing and Patrick Burke handled the transaction. 

Summit Healthcare REIT, Inc. Acquires Two Ore. Senior Living Facilities for $14.2 Million 

Summit Healthcare REIT, Inc. acquired two senior living facilities on Dec. 31, 2014, for a total purchase price of approximately $14.2 million.

The two facilities acquired include Gateway Care and Retirement Center, a 38,034 square foot facility located in Portland, Ore. that has 59 beds dedicated to skilled nursing services and 32 independent living private apartments, and Applewood Retirement Community, a 45,563 square foot facility located in Salem, Ore. that has 69 independent living apartments.

The facilities will be operated and leased by Sapphire Health Services pursuant to a 15-year triple net lease. Sapphire is an experienced operator of independent living, assisted living and skilled nursing facilities.

“We are excited to begin a relationship with Sapphire and look forward to working long-term with this exceptional operating team,” said Kent Eikanas, president and CEO of Summit Healthcare REIT, Inc., in a statement.

Cushman & Wakefield Arranges $26.8 Million Sale of Ariz. IL/AL Resort 

Cushman & Wakefield announced that as advisor to AEW Capital Management, Cushman & Wakefield’s Senior Housing Capital Markets Group has arranged the sale of The Thunderbird Retirement Resort, a 345-unit luxury independent and assisted living community in Glendale, Ariz. The community was acquired by ROC Seniors which manages three parallel funds within the seniors housing and medical facilities sectors, incepted in 2013. The property will be managed by Freedom Senior Management.

The Senior Housing Capital Markets Group also arranged the $21.2 million first mortgage, non-recourse acquisition financing of the transaction with Grandbridge Real Estate, a subsidiary of BB&T Real Estate. It is a three-year loan with competitive economic terms and extension options.

The Cushman and Wakefield team involved in the transaction included Richard Swartz, head of Cushman & Wakefield’s Senior Housing Capital Markets team; Jay Wagner, managing director; Aaron Rosenzweig, director; and Stuart Kim, associate. Aaron Rosenzweig was the advisor for the acquisition financing.

CareTrust REIT Acquires Va. ALF for $6.6 Million 

CareTrust REIT, Inc. (Nasdaq:CTRE) acquired English Meadows at Christiansburg, a 39-unit assisted living facility in Christiansburg, Va., for $6.6 million. The transaction was a sale-leaseback with Twenty/20 Management, Inc., one of western Virginia’s assisted living operators.

“Not only will this relationship allow us to improve and grow our existing campuses, but we are also looking to the future together, for new opportunities for expansion,” said Mike Williams, Chief Executive Officer of Twenty/20 Management, Inc, in a statement.

In connection with the sale, Twenty/20 entered into a long-term triple-net master lease with CareTrust. The lease has an initial term of 15 years with two five-year renewal options and CPI-based rent escalators. The English Meadows investment provides an initial cash yield of 8.50% on EBITDAR lease coverage of 1.30x, producing initial annual lease revenue of $0.56 million.

Contemporaneously with the English Meadows transaction, CareTrust also entered into an agreement with a Twenty/20 affiliate to purchase and lease back Twenty/20’s recently-acquired English Meadows Elks’ Home, a 169-unit independent and assisted living campus located in Bedford, Va., when it is stabilized. The Elks’ Home transaction is expected to close in mid-2015.

Oxton Senior Living Acquires 4 Ga. Senior Communities

Oxton Senior Living, an operator of assisted living facilities in Georgia, acquired four senior communities in 2014.

Todd Barker and Dwayne A. Edwards founded Oxton Senior Living in July 2014.

Oxton purchased, upgraded, and is now operating four senior communities. The four communities are: Oxton Village of Social Circle, Oxton Place of Douglas, Oxton Place of Rome, and Oxton Place of Savannah.

Besides its acquisition of the four communities, with plans to expand in 2015 throughout Georgia and to Alabama and other parts of the Southeast, Oxton has developed five levels of service to give families choices when considering what will be the best option for their loved ones, the company said.

In addition to Oxton’s new communities, the company launched a website intended to provide valuable information about senior living as well as educate visitors on the services that Oxton offers. The site includes an informative blog, as well as a learning center featuring resources for seniors and their loved ones.

“We have been modernizing each facility, making them more comforting, inviting, and invigorating for mind and spirit,” said Barker in a statement. 

Senior Living Brokerage Firm Facilitates $11 Million Fla. SNF Sale

Senior Living Investment Brokerage, Inc. facilitated the $11,000,000 sale of a 120 bed skilled nursing community in Jacksonville, Fla.

The All Saints Nursing Home & Rehabilitation Center was formally owned and operated by the Archdiocese of St. Augustine and was their only skilled nursing asset.

Bradley Clousing handled the transaction.

Vintage Senior Living Acquires Calif. Senior Living Community 

The Culver City senior living community – formerly known as Grandview Palms – officially transitioned operations and ownership to Vintage Senior Living under the new name Vintage Grandview.

The community – located in Los Angeles, Calif. – includes capacity for up to 90 residents, with a variety of floor plans and amenities to accommodate individual preferences and personal needs.

“As the senior population in this region continues to rise, the addition of this new community will allow us to better serve the greater Los Angeles area – offering assistance and specialized care to our residents and their families alike,” said Vintage CEO and Co-Founder Brian Flornes.  

The Culver City senior living community first opened in 2006 as a purpose-built development, able to serve a wide spectrum of needs; from light-to-moderate assistance with daily life activities, to specialized services for those affected by memory loss. 

Written by Cassandra Dowell

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