The Ensign Group closed several acquisitions throughout February and the beginning of April. First, it acquired the real estate and operations of Citrus Heights Respiratory and Rehabilitation, a 204-bed skilled nursing facility, and Springdale Village Post Acute, a 122-bed skilled nursing facility, both in Mesa, Arizona.
Blueprint’s Amy Sitzman and Giancarlo Riso were engaged by the previous owner to explore a sale or lease of Citrus Heights, which generated revenues and EBITDAR of $12.1 million and $1.2 million, respectively, despite operating below market occupancy. The seller later decided to engage Blueprint for the sale of Springdale Village, which (like Citrus Heights) was located near multiple large referral sources. The facilities received seven initial offers, and the owner initial moved forward with a regional owner/operator. But after months of ongoing negotiations, the seller pivoted to Ensign. By acquiring the real estate through its captive real estate subsidiary, Standard Bearer Healthcare REIT, Ensign was able to close on the transaction just 45 days after going under LOI.
Ensign next acquired the real estate and operations of Polaris Extended Care and Polaris Transitional Care, a skilled nursing facility with 146 beds in Anchorage, Alaska; Horizon House, a 90-unit seniors housing community in Anchorage, Alaska; Mt. Angel Health and Rehabilitation and Mt. Angel Orchard House, a senior care facility with 98 SNF beds and 50 seniors housing units in Mt. Angel, Oregon; and South Hill Rehabilitation and Care Center, a 113-bed SNF in Spokane, Washington. The real estate assets were acquired by Standard Bearer from Providence Home and Community Care (which was represented by Dan Revie of Ziegler).
Then, in April, Ensign acquired the real estate and operations of Pacific Haven Subacute and Healthcare Center, a 99-bed skilled nursing facility in Garden Grove, California. The real estate was acquired by a subsidiary of Standard Bearer Healthcare REIT, Ensign’s captive real estate company, and will be operated by an Ensign-affiliated tenant.
Standard Bearer also acquired the real estate to Emilie Court Assisted Living, a 60-unit seniors housing community in Spokane, Washington, and Mother Joseph Care Center, a 152-bed skilled nursing facility in Olympia, Washington. Each will be operated by a third-party operator and are subject to long-term triple-net leases.
In another separate transaction, Ensign announced that it acquired the operations of Alamitos West Health and Rehabilitation, a 142-bed skilled nursing facility, and Katella Senior Living Community, a 68-unit seniors housing community. Both are in Los Alamitos, California, and are subject to a long-term, triple-net lease with a third-party landlord.
