Ensign’s Three-Building Pickup; CIBC’s $34M Skilled Nursing Loan

The Ensign Group (Nasdaq: ENSG) kicked off 2021 by acquiring the operations of three skilled nursing facilities in Southern California with 99 beds apiece: Golden Hill Post Acute in San Diego, St. Catherine Healthcare in Fullerton, and Camino Healthcare in Hawthorne.

The transaction closed on New Year’s Day, and the San Juan Capistrano, Calif.-based Ensign will operate all three — through its California operating subsidiary, Flagstone Healthcare South — under a long-term triple-net lease.

“Each of these operations have tremendous organic growth potential and we are anxious to integrate these operations into their respective clusters and to work 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 deal, Ensign now operates 231 facilities; the company also owns the real estate associated with 95 of those properties.

Ensign emphasized its ongoing desire to grow despite the COVID-19 crisis.

“We are excited to add these three operations to some of our most mature clusters in California,” Ensign CEO Barry Port said. “While these acquisitions are taking place in the midst of a pandemic, our clinical and operational leadership have been preparing for these acquisitions for several months and we are confident that all the planning and preparation of some of our most experienced leaders will result in a smooth transition.”


CIBC’s $34M Loan in New Jersey

CIBC Bank USA in late December closed a $34.2 million loan for the purchase of two skilled nursing facilities in Cranford and Raritan, N.J., the Chicago-based bank announced this week.

CIBC completed the deal on behalf of an operator that has leased the facilities, each about 20 years old, since 2013. The Cranford facility has 200 beds and the Raritan facility 138, with a blended average occupancy of 90% and EBITDAR margins of 22%.

The two-year real estate loan came with an extension on the operator’s revolving line of working-capital credit.

O&M’s $17M Deal in Southern California

O&M Investments, LLC purchased a pair of skilled nursing facilities in San Diego County for $17 million at the end of December.

The two facilities have a combined bed count of more than 250. O&M entered into a long-term lease with the buildings’ current tenant, which 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.

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