Ensign Group grows in Texas with 5 long-term care acquisitions

Ensign Group has acquired five senior living and care properties in Texas in two separate transactions through subsidiaries of its captive real estate company, Standard Bearer Healthcare REIT.

Jan. 31, Ensign acquired the real estate and operations of Beacon Harbor Healthcare & Rehabilitation, a 190-bed skilled nursing facility in Rockwall; Pleasant Manor Healthcare & Rehabilitation, a 126-bed SNF in Waxahachie; Rowlett Health & Rehabilitation Center, a 150-bed SNF in Rowlett; and Crestwood Health & Rehabilitation Center, a healthcare campus with 112 skilled nursing beds and 36 assisted living units located in Wills Point.

“This acquisition showcases one of the many avenues available to Standard Bearer for growth. Where possible, we will continue to use our reputation as a top-notch operator to obtain purchase options in our leases, which allows us to grow our operations while also letting us capture the upside created in the real estate,” Ensign Chief Investment Officer Chad Keetch said.

The acquired properties had been operated by an Ensign-affiliated company under two third-party leases with purchase options since 2019. The facilities will continue to be operated by independent operating subsidiaries of Ensign and will be subject to long-term triple net leases with Standard Bearer.

“We have been anxiously waiting to exercise the purchase options on these leased operations,” Keetch said. “These operations are already strong performers both culturally and financially, and we still see tremendous upside in each of them. As these operations continue to mature, we expect to create even more value in both the operations and the real estate,” he added.

In a separate transaction effective Feb. 1, Ensign acquired through Standard Bearer the real estate and operations to Mesquite Post Acute Care, a 120-bed SNF in Lubbock, TX. 

“We are thrilled to add this facility to our organization in one of our best markets in Texas. We have been looking for the right opportunity to expand in West Texas, and Bender Terrace was the perfect fit,” Ensign CEO Barry Port said. “This facility will cluster extremely well with our existing operation in Lubbock and is another addition to Standard Bearer’s ever-growing portfolio.”

Ensign is actively seeking opportunities to acquire real estate and to lease both well-performing and struggling skilled nursing, senior living and other healthcare-related businesses throughout the United States, Port said.

The latest acquisitions bring Ensign’s portfolio to 334 skilled nursing operations, 30 of which also include senior living operations, across 15 states. Ensign subsidiaries, including Standard Bearer, own 134 real estate assets.