Ignite Medical Resorts has added four Bridgemoor Transitional Care facilities in Texas to its growing portfolio of boutique post-acute care facilities.
Chicago-based Ignite will lease the properties — which have a combined total of 339 beds, primarily in private rooms — from Westlake Village, CA-based real estate investment trust LTC Properties. Ignite announced the deal Friday. The REIT reported Monday that the acquisition cost approximately $52 million.
It is Ignite’s first foray into Texas. The five-year-old company opened three facilities during the pandemic and now operates 14 overall, including in Illinois, Kansas, Missouri, Oklahoma and Wisconsin.
The company says its branded LuxeRehab model combines “uncompromising luxury and rapid rehabilitation.” Ignite touts the amenities and décor of a fine hotel, as well as clinical programming for orthopedics, stroke, cardiac and respiratory care.
“We’re excited to blend the culture and vision of Bridgemoor with Ignite, as we share the same vision of offering top-tier hospitality and care to our guests and an unmatched culture for our employees,” Ingite CEO and co-founder Tim Fields said. “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 surgical procedure and the preferred place to work.”
Ignite specializes in short-term rehabilitation and nursing care, offering varied clinical specialty 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. The facilities range in age from two to four years old.
Ignite said it will help add clinical and therapeutic technological advancements, robotics equipment and a LuxeCafe to each of the former Bridgemoor buildings.
Bridgemoor President Mark Fritz, a 30-year long-term care veteran, is now Ignite’s chief strategy officer.
With the acquisition, Ignite now employs more than 2,000 people. Fields said that the organization’s corporate culture and focus on hospitality and clinical care are keys to creating prime environments for recuperation and that he looks forward to operating in Texas.
“Our goal is to help our guests quickly get their spark back and return home to their loved ones,” he said.
LTC Properties said that the lease term for the four former Bridgemoor facilities is 10 years, with two five-year renewal options. The agreement also contains a purchase option beginning at the end of the fifth lease year through the end of the seventh lease year. The REIT said it expects to receive rent of approximately $1 million in each of the third and fourth quarters of 2022 and approximately $4.3 million during 2023.
LTC’s relationship with Ignite began in 2019 with the announcement of the $37 million acquisition of a 90-bed post-acute skilled 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 to be operated by Ignite.
“These acquisitions represent our positive outlook on the next generation of post-acute skilled nursing,” LTC CEO Wendy Simpson said at the time.
Monday, Simpson said: “Our successful partnership with Ignite has been mutually beneficial, and we are excited to expand our relationship with them through the purchase of these four newer assets that reduce the average age of LTC’s portfolio. …We are deeply focused on growth this year and plan to utilize our creativity and flexibility to identify new investment opportunities, from sale-leasebacks to structured finance deals, while attracting solid regional operators with whom we can grow.”
Simpson said in 2019 that LTC was introduced to Ignite by Avenue Development.
Updated 4-4-22 with new information from LTC Properties.