The facility was acquired from an affiliate of Oregon-based Westcare Management. The deal was struck in mid-2007, but closing was delayed while title issues on the real estate were resolved. An Ensign operating subsidiary has been operating the facility under a short-term lease since July 2007, pending the real estate closing. The operating subsidiary will continue to operate the facility under a new long-term lease with the acquiring entity.
Proceeds of Ensign’s recent initial public offering were used to complete the transaction. Work is already underway on substantial renovations and other improvements to the facility’s physical plant, staffing patterns and clinical systems, as the facility’s leaders and staff reposition the facility to serve a larger skilled nursing population.
The Draper acquisition brings the total number of owned facilities in Ensign’s combined portfolio to 28, with Ensign affiliates holding purchase options on eight of Ensign’s 34 leased facilities.