One of California’s largest operators of skilled nursing facilities plans to build its second North Bay location, a 59-bed operation in southwest Santa Rosa.
An affiliate of Plum Healthcare Group, LLC, purchased 4.02 acres of land at 2230 Challenger Way in the Northpoint Corporate Center business park on Jan. 30 for $1.45 million, according to public records and a brokerage involved in the deal.
Plans call for construction of a 37,000-square-foot skilled nursing facility on the property, according to Cushman & Wakefield, whose agents helped represent the buyer, Anvil Development, LLC. The site is located about a block north of a $50 million, 87,000-square-foot medical office building under construction by Kaiser Permanente since November and set for completion next year.
Plum Healthcare’s development team didn’t return calls for comment on the Santa Rosa project.
Plum is one of the two largest skilled-nursing-facility operators in California, according to an extensive Sacramento Bee investigation into this segment of health care. Co-CEOs Mark Ballif and Paul Hubbard started Plum in 1999, and it is based in the San Diego suburb of San Marcos.
The company buys, leases and operates as many as five dozen nursing facilities in California, Nevada, Utah and Arizona. In July, Plum said it operated 30 in Northern California alone.
Plum’s history has been punctuated by acquisition, both of facilities and of itself. Palo Alto-based private-equity firm GI Partners bought Plum in 2006 and sold it to Bethesda, Md.-based Bay Bridge Capital in 2012.
The health care company’s other North Bay facility, the 130-bed Napa Valley Care Center at 3275 Villa Lane in Napa, came as part of a nearly 3,000-bed addition through the acquisition of Horizon West in 2011.
Nursing care facilities are a $132 billion-a-year business, growing at 2.3 percent in 2011–2016, according to market research firm Ibis World. There were 15,600 licensed nursing homes nationwide in 2014, the Centers for Disease Control and Prevention’s latest figures, and for-profit companies owned nearly 70 percent of them, adding up to 1.7 million licensed beds.
But demand is pressuring the supply of skilled-nursing beds, and that supply is encumbered by government policies on reimbursement rates for care, according to Ibis World. More than 4 million Americans are admitted to or reside in nursing homes annually, compared with nearly 1 million into assisted-living facilities, the CDC said.
Representing Anvil Development, LLC, Plum’s entity in buying the Santa Rosa land, were Travis Ives of Cushman & Wakefield and Matt Davis, Terry Jackson and Curtis Buono of The Land Group. Shawn Johnson of Santa Rosa-based Keegan & Coppin Co. Inc./ONCOR International represented seller A.J. Ventures Inc., a real estate-owned entity held by the mortgage lender, Exchange Bank of Santa Rosa.
100 E. San Marcos Blvd., Ste. 200, San Marcos, CA 92069
Key executives: Mark Ballif and Paul Hubbard