Recent Skilled Nursing Facility Transactions in North Orange County
Two skilled nursing facilities along with an assisted living property in North Orange County were sold on April 1 in separate transactions, signaling noteworthy investment activity in the region. The properties involved include a 130-bed skilled nursing facility and a neighboring 73-bed assisted living and memory care property in Los Alamitos—the Alamitos West Health & Rehabilitation and the Katella Senior Living Community. These were purchased by CareTrust Real Estate Investment Trust (REIT) and a private investor for a combined total of $34.5 million. The Goodman Group from Minnesota was the seller involved in this transaction, as reported by CoStar data.
In another significant deal, the Pacific Haven Healthcare Center, located at 12072 Trask Ave in Garden Grove, was sold for $20.5 million. This skilled nursing facility was acquired by San Juan Capistrano-based The Ensign Group Inc., which specializes in skilled nursing and senior living services. This sale involved the transfer of ownership from Companion Health Group. Ensign’s Chief Executive Barry Port expressed gratitude for their role in continuing the legacy of the facility, which has been in operation under previous management for decades.
CareTrust REIT: A Profile
CareTrust REIT plays a crucial role in these transactions. With a market capitalization of $5.3 billion, it operates approximately 42,670 beds or units primarily focused on higher-priced properties that are already in good condition. Presently, CareTrust REIT is engaged in negotiations to expand its reach into the United Kingdom by potentially acquiring Care REIT for around $817 million. It’s noteworthy that CareTrust is a spinoff of The Ensign Group, which manages or owns 343 healthcare facilities and itself boasts a market cap of approximately $6.9 billion.
The Ensign Group’s Strategy
The Ensign Group, established in 1999, has cultivated a reputation for acquiring underperforming facilities and subsequently enhancing them. In the most recent transactions, Ensign will operate both the Alamitos West and the Katella Senior Living properties. Alamitos West, located at 3902 Katella Ave. in Los Alamitos, spans 43,552 square feet, while the adjacent Katella Senior Living facility covers 29,861 square feet. The two locations together offer 60 units for assisted living and another 13 dedicated to memory care, strategically positioned across from UCI Health—Los Alamitos Medical Center.
Overview of Pacific Haven Healthcare Center
The Pacific Haven Healthcare Center is noteworthy due to its specialized offerings in short-term rehabilitation services. This facility provides extensive care options, including pain management, complex wound care, and therapy for both cardiac and pulmonary conditions. Ensign acquired this single-level, 45,399-square-foot property at a price of $452 per square foot. It’s important to note that this acquisition is separate from the purchases of the Alamitos West and Katella Senior Living facilities.
Skilled Nursing Facilities in Orange County
According to data from Orange County’s Office on Aging, there are 57 skilled nursing facilities scattered across cities such as Anaheim, Buena Park, Fullerton, and Garden Grove. However, only 17 of these facilities are located in central or southern county areas. The region’s largest skilled nursing facilities include The Pavilion at Sunny Hills, which houses 228 beds in Fullerton, and the Anaheim Healthcare Center with 213 beds.
Conclusion
The recent transactions in North Orange County reflect a vibrant market for skilled nursing and assisted living facilities. With companies like CareTrust REIT and The Ensign Group actively engaging in the acquisition and management of these properties, the region appears poised for growth in healthcare services catering to its aging population. These developments not only benefit the investors involved but also enhance the quality of care available to residents in these facilities, reflecting a positive trend in senior healthcare services.
