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Two skilled nursing facilities and an assisted living property, all in North Orange County, were sold in a pair of separate transactions on April 1.
A 130-bed licensed skilled nursing facility and neighboring 73-bed, 77-unit assisted living and memory care property in Los Alamitos—Alamitos West Health & Rehabilitation and Katella Senior Living Community—were bought by San Clemente-based CareTrust Real Estate Investment Trust (REIT) and an undisclosed private investor for $34.5 million.
Minnesota-based The Goodman Group was the seller, per CoStar data.
Meanwhile, Pacific Haven Healthcare Center, a skilled nursing facility at 12072 Trask Ave. in Garden Grove, changed hands for $20.5 million, according to CoStar. San Juan Capistrano-based The Ensign Group Inc., a skilled nursing and senior living services investor and provider, bought the facility from Companion Health Group.
“We are truly honored to have been entrusted to continue the legacy we inherit in this operation, which has been owned and operated by the prior owner for decades,” Ensign Chief Executive Barry Port said in a statement.
CareTrust REIT, which has 42,670 beds or units, has a $5.3 billion market cap (NYSE: CTRE). It is in the midst of negotiations to enter the United Kingdom by buying Care REIT for about $817 million.
CareTrust is a spinoff of The Ensign Group, which owns or manages 343 healthcare facilities and itself has a $6.9 billion market cap (Nasdaq: ENSG).
The Ensign Group is known for buying underperforming facilities and improving them while CareTrust typically purchases higher priced properties already in good shape.
Los Alamitos Properties
In this case, the Ensign Group will operate both Alamitos West at 3902 Katella Ave. in Los Alamitos, a 43,552-square-foot skilled nursing facility, and the adjacent Katella Senior Living, a 29,861-square-foot assisted living and memory care property at 3952 Katella Ave. Both properties sit on two acres and combine to offer 60 units for assisted living and 13 units dedicated to memory care.
Alamitos West and Katella Senior Living are directly across from UCI Health—Los Alamitos Medical Center. Several medical offices and healthcare-related services are also located near the two properties.
The 99-bed Pacific Haven specializes in short-term rehabilitation, with services in pain management, complex wound care, cardiac and pulmonary diseases, physical therapy, brain injury care and respiratory therapy.
The Ensign Group, which was founded in 1999 and specializes in post-acute care, bought the single-level, 45,399-square-foot skilled nursing facility for $452 per square feet. The Pacific Haven deal is not connected to the acquisitions of Alamitos West and Katella Senior Living.
OC’s Skilled Nursing Facilities
Orange County’s Office on Aging shows 57 skilled nursing facilities are in Anaheim, Buena Park, Fullerton, Garden Grove, Huntington Beach, La Habra, Orange, Santa Ana, Seal Beach, Stanton and Westminster. Only 17 facilities are in central or south County cities.
The largest skilled nursing facilities are the 228-bed The Pavilion at Sunny Hills in Fullerton, 213-bed Anaheim Healthcare Center, 208-bed Laguna Hills Health & Rehabilitation Center and 202-bed French Park Care Center in Santa Ana.