AAC Holdings (AAC) has entered a definitive agreement for the acquisition of an 84-licensed-bed hospital in the Laguna Beach area of Aliso Viejo, Calif. for an aggregate of $13.5 million in cash through its subsidiary, Behavioral Healthcare Realty, LLC. This is yet another addition by AAC to its pipeline of de novo growth opportunities.
Closing is expected to occur during the first quarter of 2015 and is subject to conditions including the amendment or removal of certain use restrictions on the property. The space is currently occupied by Arcadian at Aliso, a memory care living operator that will relocate to another facility this year.
According to a release, renovation and rehabilitation of the facility will begin in the first half of 2015. An additional $5 million for renovations and construction will be invested, which will include the addition of 40 more beds. The release adds that AAC expects to apply for a license to operate as a Chemical Dependency Recovery Hospital.
“Our de novo pipeline is a strong growth driver for us, and we have a demonstrated track record of creating growth and returns from these projects,” chairman and CEO Michael Cartwright said in a statement. “With the addition […] we now have 438 beds in our pipeline that will increase our bed count by over 80 percent the next two years.”
AAC has targeted a completion date for the first half of 2016.