Senior Housing Investments & Transactions: Spectrum Professional Services, Ensign

Spectrum Professional Services Acquired by Beecken, Sunrise JV

Beecken Petty O’Keefe & Company, a Chicago-based private equity firm that invests exclusively in health care companies, has acquired Maryland-based Spectrum Professional Services, a leading provider of rehabilitative therapy management and consulting services with more than 500 customers across the United States. Further investment in the transaction was provided by current Spectrum investors and Sunrise Senior Living.

Cain Brothers was Spectrum’s exclusive financial advisor to pursue a sale of the business. 

Spectrum Professional Services, founded in 2007, provides therapy management models that are clinically-driven, outcome-oriented and compliant. The company’s customers include a wide variety of post-acute care providers, including independent and assisted living facilities, skilled nursing facilities, continuing care retirement communities, home health agencies and outpatient rehab centers.

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The Ensign Group Acquires Three South Carolina Skilled Nursing Facilities

The Ensign Group, Inc. (NASDAQ:ENSG), the parent company of the Ensign group of skilled nursing, home health care, rehabilitative care services, hospice care, assisted living and urgent care companies, announced that it acquired the real estate and operations of three skilled nursing facilities in South Carolina.

The acquisitions, which went into effect Dec. 31, 2015, included Compass Post Acute Rehabilitation, a 95-bed skilled nursing facility in Conway, South Carolina; Las Calinas Post Acute Rehabilitation, a 99-bed skilled nursing facility in Rock Hill, South Carolina; and Opus Post Acute Rehabilitation, a 100-bed skilled nursing facility in West Columbia, South Carolina.

“These three operations are the perfect complement to our recently acquired operation in South Carolina and provide an excellent platform for us to implement our locally-driven cluster model,” said Christopher Christensen, Ensign’s President and Chief Executive Officer. Christensen anticipates the new operations, which have a combined occupancy rate of approximately 65% at acquisition, to be mildly accretive to earnings in 2016.

The three acquisitions bring Ensign’s growing portfolio to 185 healthcare facilities, 15 home health agencies, 13 hospice agencies, three home care businesses and 17 urgent care clinics across 14 states. Christensen said the organization is actively seeking several additional transactions to acquire real estate and to lease both struggling and well-performing skilled nursing, assisted living and other health care-related businesses on the East Coast and throughout the country.

Assisted Living Facility in Orange County, California, Sells for $37 Million

Evans Senior Investments has arranged the sale of Sunnycrest, a 100% private pay assisted living facility in Orange County, California, for $37 million, or $284,615 per unit. The facility has 130 units—91 assisted living studios and 39 assisted living suites.

“Sunnycrest’s ideal location, proximity to superb health care, and 100% private payor mix offered an opportunity to own a stabilized asset in the heart of Southern California,” said Evans Senior Investments CEO Jeremy Stroiman.

Evans Senior Investments is a senior housing investment banking firm that offers customized, innovative solutions to maximize profitability for owners of senior housing businesses. The firm has worked with more 500 senior housing businesses in all 50 states.

Senior Living Investment Brokerage, Inc. Sells Texas Assisted Living Facility for $3,785,000

Glen Ellyn, Illinois-based Senior Living Investment Brokerage, Inc. announced that Managing Director Matthew Alley sold an assisted living facility in Kingsland, Texas, for $3,785,000. The facility was bought by an independent owner-operator located in the Dallas/Fort Worth region.

The Kingsland facility has 60 units and was constructed in 1997. 

“The Kingsland transaction allowed for the outgoing operator to sell a non-core assisted living facility in order to focus on its skilled nursing holdings,” Alley said. “This deal showed the benefits of Senior Living’s local focus as the purchaser is a smaller owner-operator located in Texas.” 

Centers Health Care to Privatize Westmount Health Facility in New York

The $2.3 million sale of the Westmount Health Facility nursing home in Queensbury, New York, was scheduled to take place Dec. 31. 

Centers Health Care, a New York City company, is set to purchase the 80-bed facility, making it privately owned.

New York’s Warren County is selling the nursing home because it has been losing hundreds of thousands of dollars per year. Centers Health Care has also bought nursing homes that were operated by New York’s Essex, Washington and Fulton counties.

Provident Resources Group Inc. Acquires Site in Zachary, Louisiana, for Assisted Living, Memory Care Facility

Baton Rouge, Louisiana-based Provident Resources Group Inc. has purchased 4.4 acres in Zachary, Louisiana, enabling it to start building an $18 million, 68,000-square-foot assisted living facility announced over a year ago.

The land is located in the Americana traditional neighborhood development, a 413-acre development that has space for more than 800 single-family homes, 482,500 square feet of office and retail space, and multifamily residences.

The assisted living facility, Provident Village at Americana, is expected to have 90 units—48 assisted living units and and 42 memory care units— and to be completed in summer 2017.

Fox Ridge Management LLC Sells Three Senior Housing Communities in Arkansas to Subsidiaries of Healthcare Trust Inc. of New York

Fox Ridge Management LLC has sold three seniors housing communities in central Arkansas to subsidiaries of Healthcare Trust Inc., a real estate investment trust (REIT) based in New York that is focused on health care.

Financial terms of the transaction were not disclosed. Fox Ridge said it plans to continue to serve as manager for three properties, which are in Little Rock, Bryant and North Little Rock.

“Residents and their families will still receive the same high level of service Fox Ridge has always provided,” said Rodney Thomason, CEO of Medical Assets Holding Co. of North Little Rock. “That was the only way we agreed to sell the properties – if we could maintain the integrity of our facilities.”

Senior Living Investment Brokerage Sells Two Assisted Living Facilities in Ohio

Senior Living Investment Brokerage Inc.’s Ryan Saul and Brad Clousing facilitated the sale of two assisted living communities in Ohio to a private owner based in Kentucky.

The price of the transaction was not disclosed.

The assisted living communities—Fox Run in Findlay, Ohio, and Springfield in Springfield, Ohio— have 147 units in total.

Fox Run, which was 78% occupied at the time of sale, is about 52,591 square feet and sits on 3.92 acres of land. Springfield, which was 82% occupied at the time of sale, is about 53,382 square feet and sits on 5.36 acres of land. 

Meridian Foresight Sells Last Skilled Nursing Facility from Portfolio 

Meridian Foresight Management Services has sold its last skilled nursing facility, the Shasta View Nursing Center. The Weed, California, facility was sold to Oregon-based operator that already has a variety of skilled nursing facilities throughout Colorado and Oregon. 

The lease-purchase transaction was facilitated by Shep Roylance of JCH Senior Housing Group. When the facility graduates off the special facility focus (SFF), the new operator is expected to exercise its option to buy Shasta for $4.13 million. The 59-bed skilled nursing facility is both Medi-Cal and Medicare-certified.

Senior Living Investment Brokerage Sells SNF/RC and IL Facilities in Iowa

Senior Living Investment Brokerage Inc.’s Ryan Saul and Jeff Binder facilitated the sale of a 222 bed/unit skilled nursing facility/rehabilitative care and independent living community for $3.1 million to Indiana-based Ide Management Group.

The seller was a public REIT that divested an underperforming, non-core asset. 

Countryside Nursing & Rehab (SNF/RC) and Country Side Four Seasons (ILF) are both located in Sioux City, Iowa.

Countryside Nursing & Rehab is about 68,457 square feet. With part of the building lacking a sprinkler system, overall occupancy struggled and was just 35%. Country Side Four Seasons is about 45,553 square feet. Occupancy at the time of sale was 74%.

Double J Properties LLC Buys Abandoned School Building in Michigan to Transform into Assisted Living

Double J Properties LLC has purchased the Riegel Elementary School building in Bay City, Michigan, for $95,000 with plans to turn it into an assisted living facility.

The school was built in 1970 and closed in 2005.

Double J Properties is an affiliate of Close to Home Assisted Living. The companies currently own and operate four other properties in Bay County, including a similar assisted living facility called Close to Home Assisted Living East South Union.

The project at Riegel Elementary School is expected to cost $2 million, including the purchase of the building, and to be finished in fall 2016. Close to Home Assisted Living Riegel is anticipated to house as many as 32 residents.

Written by Mary Kate Nelson

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