Two Transactions in 30-day Window Expand Portfolio to 22 States
May 8, 2019 — SKOKIE, IL – Cascade Capital Group, a private healthcare real estate investment firm, announced the acquisition of 15 skilled nursing and assisted living facilities in two separate transactions. These transactions had a combined purchase price of $130 million and consists of over 1550 licensed beds. The facilities, located in three states, California, Minnesota and South Dakota, were leased out to four different third-party operators.
On May 1, Cascade closed a transaction acquiring five southern California skilled nursing facilities. 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 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 separate prior transaction, Cascade acquired five skilled nursing and two assisted living facilities located in Minnesota and South Dakota. The transaction was smooth despite the complications that arose due to the financial status of the former operator. Cascade 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.”
The seller, Chuck Fox, agreed. “Given the difficult circumstances, all of which were out of their control, Cascade performed flawlessly. I would happily do another transaction with them in the future,” he said.
Rob Reis, of Marcus & Millichap, represented the seller on this transaction. CIBC financed this transaction for Cascade.
About Cascade Capital Group, LLC
Cascade is an independent, privately-held healthcare real estate investment and management company focused on acquiring underperforming/value-add skilled nursing, rehabilitation, post-acute, and transitional care facilities. Launched in 2016 by the leadership team that built Legacy Healthcare, Cascade is rapidly growing its portfolio size and value. Today it is among the most active independent skilled nursing facility investors with an interest in individual and multi-asset portfolios, stable and distressed facilities and mixed or multi-state portfolios. For more information visit cascadellc.com.
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For more information: Anna Lockhart, (312) 718-6511, firstname.lastname@example.org