Cascade Picks Up 15 Properties in $130M Deals; $7.6M Skilled Nursing Exit in Texas

Cascade Capital Group expanded its footprint in a major way over the last month, buying a total of 15 skilled nursing and assisted living facilities in two separate transactions with a total purchase price of $130 million.

The first deal, which closed May 1, saw Cascade pick up five skilled nursing buildings in Southern California, which the Skokie, Ill.-based firm then leased to affiliates of The Ensign Group (Nasdaq: ENSG) and The Providence Group.

Three more buildings will join the initial five over the next few months, according to Cascade, with Sector Financial and Formation Lending Group supplying the senior financing and mezzanine debt, respectively.

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In the second deal, Cascade picked up five SNFs and two assisted living facilities from a nearly bankrupt operator with a presence in Minnesota and South Dakota. The private investment firm in turn leased the Minnesota properties to Monarch Healthcare Management, with Eduro Healthcare assuming control of the South Dakota buildings.

“During the process, the outgoing operator was on the verge of bankruptcy. That added complexity and urgency,” Yitzy Rosenblum, Cascade’s executive vice president of acquisitions, said in a statement announcing the deal. “We leveraged our experience in navigating complex transactions and quickly identified two strong regional operators that were able to facilitate an expeditious transition.” 

CIBC provided financing for the Minnesota/South Dakota deal, with Marcus & Millichap’s Rob Reis representing seller Chuck Fox.

The two deals, which encompassed more than 1,550 licensed beds, brought Cascade’s total footprint to 22 states; the company was founded in 2016 by the leadership team of Skokie-based Legacy Healthcare, which operates SNFs in the Chicagoland area under a variety of brand names.

Texas Operator Exits Market with $7.6M Deal

The non-profit owners of the 174-bed Regent Care Center of San Marcos, Texas this month sold the property for $7.6 million, exiting the marketplace about 30 miles south of downtown Austin.

Built in 2008, the property had suffered from low census, high turnover, and low cash flow, according to Senior Living Investment Brokerage, which facilitated the sale.

“This transaction allowed for the outgoing operator to exit this market,” Matthew Alley, managing director at the Glen Ellyn, Ill.-based SLIB, said in a statement. “This deal showed the benefits of SLIB’s local focus as the purchaser is a mid-sized owner-operator with other facilities located in Texas. There were some regulatory issues at the facility, which the buyer hopes to correct and build census.” 

The facility’s new operator is also a member of Texas’s Quality Incentive Payment Program (QIPP), a state-level initiative designed to help boost sagging Medicaid rates for certain high-performing operators.

KR Management Expands with Campus in West Palm Area

KR Management LLC this week announced its takeover of The Addington at Wellington Green, a post-acute rehab and assisted living facility in Wellington, Fla., just outside of West Palm Beach.

The Indian Shores, Fla.-based company had been managing the campus, formerly known as NuVista Living at Wellington Green, on an interim basis since February, and received formal licensure approval from the state of Florida on April 1.

The facility features 52 assisted living units and 120 post-acute care beds, with a focus on short-term post-acute rehabilitation.

KR Management runs 10 senior housing and care properties in the Sunshine State, with the Addington marking its first entrance into the Palm Beach market.

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