In The Ensign Group’s recent slew of acquisition announcements, it was revealed that the provider was the buyer in two transactions that were handled by Senior Living Investment Brokerage. First, Nick Cacciabando, Jeff Binder and Ryan Saul were engaged by a local owner in its divestment of its only senior care facility.
Hillside Village of De Soto, located in De Soto, Kansas, offers assisted living and skilled nursing services, comprising 65 units (38 AL, 27 SNF) and is licensed for 95 beds (46 AL, 49 SNF). The SNF portion was built in 1970, and the AL portion in 2003. Operations were solid, with EBITDAR hovering around $648,000 on $5.6 million of revenues. And there is room for improvement with occupancy, which stood at 79%.
The real estate was acquired by a subsidiary of Standard Bearer Healthcare REIT, Inc., Ensign’s captive real estate company, and the acquisition was effective May 1. The purchase price came to $6.5 million, or $100,000 per unit and $68,400 per bed, with a 10.0% cap rate. Gateway Healthcare, LLC, Ensign’s Kansas-based subsidiary, will take over operations.
Ensign also announced its purchase of North Chandler Place in Chandler, Arizona. Built in 1966 with additions made in 2002 and 2007, the community consists of 198 units and 230 beds of independent living (119 units), assisted living/memory care (45 units) and skilled nursing (66 beds). A group of investors decided to divest the asset in order to reinvest the proceeds in other core assets in the portfolios. Ensign will invest in capital improvements, but no financial details were disclosed. Standard Bearer also acquired the real estate of the campus, and Bandera Healthcare LLC, Ensign’s Arizona-based subsidiary, took over operations. Jason Punzel, Brad Goodsell, Cacciabando and Saul handled the transaction.
