Cascade Capital Group has bought 15 skilled nursing and assisted living facilities in two separate transactions at a total cost of $130 million.
The facilities are in California, Minnesota and South Dakota.
Cascade leased facility operations to two post-acute care providers, affiliate operators of The Ensign Group Inc. and The Providence Group. An additional three facilities will transition over the next few months. Sector Financial provided senior financing and Formation Lending Group provided the mezzanine debt, Cascade executives said.
“Cascade is excited to partner with two quality operators with a long-standing presence in the local California markets” said Ben Shibe, Cascade’s Chief Investment Officer. “Our continued relationship with the Ensign team as well as our new partnership with The Providence Group deepens our network of operators that focus on providing high level patient care while simultaneously ensuring financial stability in their facilities.”
In a prior transaction, Cascade acquired five skilled nursing and two assisted living facilities in Minnesota and South Dakota. It leased the Minnesota facilities to Monarch Healthcare Management and the South Dakota facilities to Utah-based Eduro Healthcare.
“During the process, the outgoing operator was on the verge of bankruptcy. That added complexity and urgency,” explained Yitzy Rosenblum, Cascade’s Executive Vice President of Acquisitions. “We leveraged our experience in navigating complex transactions and quickly identified two strong regional operators that were able to facilitate an expeditious transition.”