The Ensign Group (NASDAQ: ENSG) announced it acquired the real estate and operations of The Waterton Healthcare and Rehabilitation, a 74-bed skilled nursing facility in Tyler, Texas.
In a separate transaction on the same day, Ensign affiliates acquired the operations of Amarsi Assisted Living, a 103-bed assisted living facility located in Glendale, Ariz. and Citadel Assisted Living Facility, a 180-unit independent living and 150-bed assisted living facility located in Mesa, Ariz.
The operations are part of a health care campus that includes skilled nursing services operated by Ensign affiliates. All these acquisitions were effective March 1.
ESI Arranges Sale of Skilled Nursing Facility in Ohio for $10.75M
Evans Senior Investments announced the sale of an 180-bed skilled nursing community in Ohio for $10,750,000 or $60,000 per bed.
The community, built in 1965, underwent a $220,000 renovation in 2019 and includes nine private units with the rest being semi-private.
In FY 2019 the facility posted $10.3 million in revenue and 72% occupancy, but struggled to reach industry standard net operating income margins of 12 to 15%due to the below average Medicaid rate and low post-acute rehabilitation census, according to the news release.
Since March 2020 the facility has suffered from pauses in admissions and elective surgeries which resulted in a census low of 43%.
“While marketing the community, the state of Ohio issued a $20 per day Medicaid rate increase which is expected to add an additional $600,000 in revenue for the new operator,” Henry Fuller, senior associate at ESI, said in the news release.
ESI CEO Jeremy Stroiman added that the competitive price per bed paid for a community whose census was below 50% showcases the strength of the skilled nursing market.
The buyer was reportedly a regional operator who had an existing presence in Ohio.
The Ohio deal was the first closing of 2022 for Evans Senior Investment after closing over $870 million in deal volume, representing 26 different sellers across the industry.
VIUM Capital Lands $6.5M HUD Loan
VIUM Capital announced it closed on a $6.5 million Department of Housing and Urban Development loan for the acquisition and capex of a skilled nursing facility in southwestern Ohio.
The facility was the only asset for the seller but nicely fit into the buyer’s established Ohio portfolio, VIUM Capital said in the news release.
Ziegler Prices $18,910,000 in Financing For Virginia CCRC
Specialty investment bank announced the pricing of Kendal at Lexington’s $18,910,000 Series 2022 Bonds.
Kendal at Lexington includes 150 independent living units, 19 assisted living units and 60 skilled nursing beds.
Proceeds from the bonds will be used, together with other available funds, to refund a portion of the outstanding principal amount of the Series 2017A Bonds, pay all or a portion of the costs of issuance associated with the Series 2022 Bonds and fund a debt service reserve fund. The bonds have a final maturity of 26 years, a weighted average maturity of 20.26 years and an overall yield to maturity of 3.75%.
This deal resulted in annual cash flow savings of $140,316.
Companies featured in this article:
Evans Senior Investments, The Ensign Group, VIUM Capital, Ziegler
