Thank you for sharing!

Your article was successfully shared with the contacts you provided.

MISSION VIEJO, CA-Two companies based in Orange County have signed deals for skilled nursing and assisted living facilities in transactions valued at more than $19 million. The buyers were the Ensign Group Inc., based here, and Foothill Ranch-based Skilled Healthcare Group Inc.

The Ensign Group Inc., which is the publicly held parent company of the Ensign group of skilled nursing, rehabilitative care services and assisted living companies, bought four skilled nursing facilities in Texas and California for an aggregate price of approximately $10.4 million. Ensign bought the properties from one of the company’s longtime landlords via four separate Ensign holding subsidiaries. Together the facilities comprise 426 licensed skilled nursing beds.

Skilled Healthcare Group Inc., which is also publicly held, entered into an agreement to acquire seven assisted living facilities in Kansas from Medicalodges for an aggregate of $8.8 million. Skilled Healthcare plans to operate the facilities through its subsidiaries under the Vintage Park name.

The new Ensign assets include three in Texas and one in California Ensign subsidiaries have been operating the three Texas facilities since 1999 and the California facility since 2001. The operating subsidiaries will continue to operate their facilities under new long-term leases with the acquiring entities.

The three Texas facilities are Northern Oaks Living & Rehabilitation Center, a 96-bed skilled nursing facility in Abilene; Wellington Place Living & Rehabilitation Center, a 140-bed skilled nursing facility in Temple and Salado Creek Living & Rehabilitation Center, a 120-bed skilled nursing facility in San Antonio. The California property is Northbrook Nursing & Rehabilitation Center, a 70-bed skilled nursing facility in Willits.

Christopher Christensen, Ensign’s president and CEO, commented in a prepared statement that the acqusitions will enable the company to “fix our long-term occupancy costs and add to our portfolio of owned and financeable properties.” Ensign operates five other facilities under leases from affiliates of the same landlord that sold the four properties.

The Mission Viejo-based company used proceeds of its recent initial public offering used to complete the transaction. Ensign affiliates currently operate 62 facilities in six Western states, and this acquisition brings the total number of owned facilities in Ensign’s combined portfolio to 32, with Ensign affiliates holding purchase options on eight of the 30 leased facilities.

The properties that Skilled Healthcare Group bought total more than 200 units. They are located in Eureka in Greenwood County; Neodesha and Fredonia in Wilson County; Osage City in Osage County; Wamego in Pottawatomie County; Holton in Jackson County.

Boyd Hendrickson, CEO of Skilled Healthcare, says that the new facilities will complement the Vintage Park assisted living operations. The seller, Medicalodges, has a 44-year history in the industry, noted Garen Cox, president and CEO of Medicalodges.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.