The former Desert Life Rehabilitation & Care Center, a Kindred Healthcare managed center at 1919 West Medical Street in Tucson has sold for $10.13 million ($44,022 per bed). The 65,294-square-foot facility in four buildings sit on 9.58 acres at the corner of Orange Grove and Corona roads, adjacent to Northwest Hospital Medical Plaza in Tucson.
The Ensign Group acquired the 230-bed skilled nursing facility. The California–based Ensign Group, has rebranded the facility since buying it to Casas Adobes Post-Acute Rehabilitation Center.
"We are excited to add a second operation this year to our 15 existing operations in Arizona," said Christopher Christensen, Ensign's President and Chief Executive Officer, referring to Ensign's March acquisition of Horizon Post-Acute and Rehabilitation Center, a 196-bed skilled nursing facility in Glendale, Arizona. "Together with Ensign's existing operations in the Tucson market, this new addition strengthens our local cluster and will magnify our ability to provide top quality care to the patients and families we serve," he added.
"We are proud to be joining a wonderful team of caregivers as we seek to reinforce and strengthen the caring, patient-centered environment they have created here," said John Albrechtsen, President of Bandera Healthcare, Ensign's Arizona-based portfolio subsidiary. He added that the residents, their families, and the broader community have embraced the news of Ensign's acquisition of this facility and are encouraged by Ensign's local reputation. Casas Adobes had an occupancy rate of approximately 43% at acquisition and is expected to be mildly accretive to earnings in 2014.
The Ensign Group Inc. is the parent company of the Ensign group of skilled nursing, rehabilitative care services, home health care, hospice care, assisted living and urgent care companies. Its independent operating subsidiaries provide physical, occupational and speech therapies, home health and hospice services, urgent care services and other rehabilitative and healthcare services in eleven states throughout the western and mid-western U.S.
The new owners expect Casas Adobes Post-Acute, with an occupancy rate of around 43%, to be mildly accretive to earnings in 2014. This acquisition marks Ensign’s 121st addition to its portfolio of healthcare facilities and the 16th in the row of its Arizona operations. One of these, Horizon Post-Acute and Rehabilitation Center in Glendale, AZ was purchased earlier this year. Horizon Post-Acute and Casas Adobes Post-Acute will remain with Ensign after separating its real estate business from the healthcare operations.
Ensign purchased Casas Adobes with cash from Ventas Realty, LP an affiliate of Ventas Inc. a REIT out of Chicago, IL. In addition, the real estate assets it acquired in this acquisition and in the Horizon Post-Acute acquisition will remain with Ensign after the completion of the recently disclosed plan to separate Ensign's real estate business from its healthcare operations.
Christensen is at (949) 487-9500. Albrechtsen can be reached at (520) 795.9574.
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[mepr-show rules="58038"]Sale date: May 1, 2014. Sale price: $10,125,000. All cash transaction. APN: 102-12-880. Buying entity was Montebella Health Holdings, LLC an affiliate of The Ensign Group.[/mepr-show]