Pick-up at three Ensign buildings; CIBC Skilled Nursing Loan of $ 34 million
The Ensign Group (Nasdaq: ENSG) kicked off 2021 by acquiring the operations of three skilled nursing facilities in Southern California with 99 beds each: Golden Hill Post Acute in San Diego, St. Catherine Healthcare in Fullerton, and Camino Healthcare in Hawthorne.
The transaction closed on New Years Day, and San Juan Capistrano, Calif., Based Ensign will operate all three – through its California operating subsidiary, Flagstone Healthcare South – as part of a long-term triple net lease.
“Each of these operations has enormous potential for organic growth and we look forward to integrating these operations into their respective clusters and working with our local healthcare partners to provide excellent service to each patient and their families,” Adam Willits , president of Flagstone Healthcare South, said in a statement.
With the agreement, Ensign now operates 231 facilities; the company also owns the real estate associated with 95 of these properties.
Ensign stressed his willingness to continue to grow despite the COVID-19 crisis.
“We are excited to add these three operations to some of our more mature clusters in California,” said Ensign CEO Barry Port. “As these acquisitions take place in the midst of a pandemic, our clinical and operational management has been preparing for these acquisitions for several months and we are convinced that all the planning and preparation of some of our most experienced leaders will result in a smooth transition. “
CIBC loan of $ 34 million in New Jersey
In late December, CIBC Bank USA closed a $ 34.2 million loan to purchase two skilled nursing facilities in Cranford and Raritan, New Jersey, the Chicago-based bank said this week.
CIBC completed the transaction on behalf of an operator who has leased the facilities, each for approximately 20 years, since 2013. The Cranford facility has 200 beds and the Raritan 138 facility has an average occupancy rate. 90% weighted and 22% BAIIALA margins. .
The two-year mortgage loan was accompanied by an extension of the operator’s working line of credit.
The $ 17 million O&M deal in Southern California
In late December, O&M Investments, LLC purchased two skilled nursing facilities in San Diego County for $ 17 million.
The two facilities have a combined bed count of over 250. O&M has entered into a long-term lease with the current tenant of the buildings, who operates more than 20 properties across the Golden State; the operator will also receive $ 700,000 for capital improvements.
O&M’s Nick Martinez and Todd Okum closed the deal.