CareTrust Picks Up Cascadia Facility for $12.8M; Ciena Healthcare’s $20M Construction

CareTrust REIT (Nasdaq: CTRE) expanded its existing relationship with operator Cascadia Healthcare with the $12.8 million purchase of a transitional care facility in Nampa, Idaho.

Cascadia of Nampa, a 99-bed facility one block away from the Saint Alphonsus Medical Center, became the 12th building from the Eagle, Idaho-based operator to enter the CareTrust portfolio.

“We are proud to add another first-class facility to our Cascadia portfolio,” Mark Lamb, CareTrust’s chief investment officer, said in a statement announcing the deal. “Cascadia of Nampa is a purpose-built post-acute facility that will be a fixture in the Nampa health care community for years to come, and we are excited to watch Cascadia expand their patient-focused care model throughout the Treasure Valley,” he added.

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The San Clemente, Calif.-based real estate investment trust (REIT) made an equity investment in the facility during its development, which came with a purchase option once operations stabilized.

Cascadia of Nampa, which opened in 2017, brought the total number of Cascadia beds under CareTrust’s ownership to 1,013. The operator will pay an initial lease amount of $1.45 million, with annual Consumer Price Index-based escalators; the 12-year term has three five-year renewal options.

CareTrust also invested in a sister facility, Cascadia of Boise, which is nearing operational stability, according to the REIT.

“We deeply appreciate CareTrust’s support of both projects from inception, and we are excited to be expanding our relationship with the CareTrust team,” Owen Hammond, Cascadia’s CEO, said in the statement.

Ciena Healthcare Opens $20M SNF in Michigan

Ciena Healthcare last week celebrated the opening of the Regency at St. Clair Shores, a $20 million development that marks its fourth building in Macomb County, Mich., The Macomb Daily reported.

The facility features 56 single rooms and 43 semi-private accommodations, with a focus on short-term rehab and therapy services.

“Skilled nursing centers like Regency at St. Clair Shores are an integral part of reducing hospital re-admissions, a critical component of the recovery process,” Mohammad Qazi, president of the Southfield, Mich.-based Ciena, told the publication. “Regency at St. Clair Shores will provide care to residents requiring additional therapy and recovery time before returning home.”

The new facility will employ 200 full- and part-time workers, according to the publication.

Legacy Healthcare Officially Takes Over 16 South Dakota SNFs

Legacy Healthcare officially took over the operations of 16 SNFs in South Dakota, the company announced late Monday. The transaction allows the operator to create a second regional hub on top of its existing one in the Chicagoland area, according to a press release announcing the deal.

The portfolio consists of more than 1,000 beds from Rapid City to Sioux Falls, according to the Skokie, Ill.-based operator, which secured financing for the deal through CIBC Bank USA. In addition to its presence in Chicago and its suburbs, the operator has facilities in Montana and Utah.

“Our Legacy team is excited to partner with the current facility staff who have already demonstrated a strong passion of providing high quality of care,” Connie Ortega, vice president of operations for Legacy Healthcare, said.

A South Dakota court in June approved the transfer of 16 SNFs in South Dakota formerly operated by Skyline Healthcare to Cascade Capital Group, the Aberdeen News reported. Legacy Healthcare is Cascade’s operating affiliate.

“Acquiring this portfolio at a good value will allow the Legacy team to commit the necessary capital to help enhance these facilities through capital improvements and innovative programming,” Yitzy Rosenblum, executive vice president of acquisitions at Cascade, said in the statement.

Sanford Continues Expanding with UnityPoint Health Merger

Sanford Health, the major health system that boosted its skilled nursing presence last year with the acquisition of the Evangelical Lutheran Good Samaritan Society, plans to expand again by merging with UnityPoint Health.

The two non-profits signed a letter of intent to explore a combination last week, with the tentative goal of closing the deal by the end of 2019. Should the transaction clear regulatory hurdles, the combined company would become one of the 15 largest non-profit health systems in the country, with $11 billion in annual revenues and a wide presence across the Midwest.

The Sioux Falls, S.D.-based Sanford formally completed its marriage to Good Samaritan in early January after approving the deal in June 2018, bringing about 80 SNFs into the health system’s portfolio. The combined company has since sold some of its SNFs, though the decision to exit those buildings largely predated the merger.

The Des Moines-Based UnityPoint has locations in Iowa and Illinois.

“As trusted health care brands with deep Midwestern roots, our organizations have worked hard to establish strong relationships in the communities we serve, whether that be a small rural town or a location across the globe,” Kevin Vermeer, president and CEO of UnityPoint, said in a statement. “Together, we will build on these relationships to create new opportunities to meet unique community needs and thrive in an ever-changing environment.”

Under the preliminary deal structure, Vermeer will serve as the merged company’s senior executive vice president, with Sanford president and CEO Kelby Krabbenhoft retaining those titles moving forward.

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