Ignite Medical Resorts added four Bridgemoor transitional care facilities in Texas to its growing portfolio of post-acute care facilities.
Chicago-based Ignite will lease the properties — which have a combined total of 339 beds, mostly in private rooms — to Westlake Village, Calif.-based real estate investment firm LTC Properties. Ignite announced the deal on Friday. The REIT said Monday that the acquisition cost about $52 million.
This is Ignite’s first foray into Texas. The five-year-old company opened three facilities during the pandemic and now operates 14 in total, including in Illinois, Kansas, Missouri, Oklahoma and Wisconsin.
The company says its branded LuxeRehab model combines “uncompromising luxury and speedy rehabilitation.” Ignite touts the amenities and decor of a beautiful hotel, as well as clinical programming for orthopedics, stroke, cardiac and respiratory care.
“We are thrilled to blend the culture and vision of Bridgemoor with Ignite, because we share the same vision of providing top-notch hospitality and care for our guests and an unparalleled culture for our employees,” said Ignite CEO and Co-Founder Tim Fields. “We look forward to working with the Bridgemoor team to continue to make these resorts the preferred place to go after a hospital stay or surgery and the preferred place to work.”
Ignite specializes in short-term rehabilitation and nursing, offering various specialty clinical programs including bedside dialysis and enhanced services in what is described as a five-star medical resort environment.
The acquired Bridgemoor facilities are in Fort Worth, San Antonio, Round Rock (Austin) and Webster (Houston) and are now known as Ignite Medical Resorts. Facilities range in age from two to four years.
Ignite said it will help add clinical and therapeutic technology advances, robotic equipment and a LuxeCafe to each of Bridgemoor’s older buildings.
President of Bridgemoor Marc Fritza 30-year veteran of long-term care, is now Chief Strategy Officer of Ignite.
With the acquisition, Ignite now employs over 2,000 people. Fields said the organization’s corporate culture and emphasis on hospitality and clinical care are key to creating top-notch recovery environments and that he looks forward to operating in Texas.
“Our goal is to help our customers quickly find their spark and return home to their loved ones,” he said.
LTC Properties said the lease term for the four former Bridgemoor facilities is 10 years, with two five-year renewal options. The agreement also contains an option to purchase from the end of the fifth lease year until the end of the seventh lease year. The REIT said it expects to receive approximately $1 million in rent in each of the third and fourth quarters of 2022 and approximately $4.3 million in 2023.
SLD relationship with Ignite began in 2019 with the announcement of the $37 million acquisition of a 90-bed skilled post-acute nursing facility in Kansas City, MO (now Ignite Medical Resorts KC Northland), plus a parcel of land in Independence, MO, to develop a similar product (now Ignite Medical Resorts Blue Springs), both operated by Ignite.
“These acquisitions represent our positive outlook for the next generation of post-acute skilled nurses,” LTC CEO Wendy Simpson said at the time.
On Monday, Simpson said, “Our successful partnership with Ignite has been mutually beneficial, and we are delighted to expand our relationship with them through the purchase of these four new assets which reduce the average age of LTC’s portfolio. …We are deeply focused on growth this year and plan to use our creativity and flexibility to identify new investment opportunities, from sale-leasebacks to structured finance deals, while attracting strong regional operators with whom we can grow.
Simpson said in 2019 that LTC was introduced to Ignite by Avenue Development.
Update 4-4-22 with new information from LTC Properties.