The Ensign Group Acquires Office Building in Orange County, California
June 19 2018 - 7:03PM
The Ensign Group, Inc. (NASDAQ:ENSG), the parent company of the
Ensign™ group of skilled nursing, rehabilitative care services,
home health care, hospice care and assisted living companies,
announced today that a wholly-owned subsidiary acquired an office
building located in San Juan Capistrano, California. The
acquisition was effective June 13, 2018.
“We are thrilled to announce that we have
purchased office space in nearby San Juan Capistrano to accommodate
our growing Service Center team,” said Christopher Christensen,
Ensign's President and Chief Executive Officer. “With our
existing lease in Mission Viejo set to expire in 2019, we
diligently reviewed current market conditions as well as the
Service Center’s short- and long-term real estate needs.
After considering dozens of possibilities over the last 18 months,
we determined that owning the Service Center made the most sense
financially and operationally,” he added.
Christensen also announced that the property
consists of approximately 115,517 square feet of usable office
space, and that the building is currently 92% occupied by
third-party tenants. The Company closed with cash drawn from
its revolver and is currently working on favorable long-term,
fixed-rate financing options that it expects to complete in the
third quarter.
"We carefully selected this space based on the
attractive and convenient location for our current and future team
members as well as our third-party tenants. With this
ownership, we not only expect to save millions of dollars in future
rental increases for decades to come, but we are most excited about
the ability this will give us to continue to attract and retain the
best and brightest Service Center leaders,” he added.
The Company anticipates entering into a lease
with its wholly-owned subsidiary, Ensign Services, Inc. (“Ensign
Services”), and expects Ensign Services to occupy a portion of the
space upon termination of its existing office leases in 2019.
Ensign also expects to continue favorable third-party leasing
arrangements for any space not occupied by Ensign Services.
Ensign's growing portfolio consists of 184
skilled nursing operations, 22 of which also include assisted
living operations, 51 assisted and independent living operations,
22 hospice agencies, 20 home health agencies and four home care
businesses and one office building across fifteen states.
Ensign owns the real estate at 67 of its 235 healthcare
operations. Mr. Christensen reaffirmed that the organization
is actively seeking opportunities to acquire real estate and to
lease both well-performing and struggling skilled nursing, assisted
living and other healthcare related businesses throughout the
United States.
About Ensign(TM)
The Ensign Group, Inc.'s independent operating
subsidiaries provide a broad spectrum of skilled nursing and
assisted living services, physical, occupational and speech
therapies, home health and hospice services and other
rehabilitative and healthcare services at 235 healthcare
facilities, 22 hospice agencies, 20 home health agencies and four
home care businesses in California, Arizona, Texas, Washington,
Utah, Idaho, Colorado, Nevada, Iowa, Nebraska, Oregon, Wisconsin,
Kansas, South Carolina, and Oklahoma. More information about Ensign
is available at http://www.ensigngroup.net.
Contact Information
The Ensign Group, Inc., (949) 487-9500,
ir@ensigngroup.net
SOURCE: The Ensign Group, Inc.
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