In early 2015, American Addiction Centers (AAC) CEO Michael Cartwright said he was fond of the Northeast for development sites. At that time, AAC announced the purchase of a facility in Ringwood, N.J., built in 1861, that previously functioned as a convent, situated on 96 acres of land. Renovations and new construction in Ringwood now have begun, and the company projects an aggregate investment of $22.5 million for the property, which it purchased for $6.5 million in cash.
The facility is expected to be completed in the first half of 2018.
Ringwood becomes the fifth project in AAC’s de novo pipeline, which now includes 194 residential beds and 248 sober living beds for a total capital investment of $42.5 million.
“We have a growing presence in the Mid-Atlantic, and Ringwood will complement an existing business development team in the region as well as a residential treatment facility and outpatient center in New Jersey,” Cartwright said in a statement.
The initial timetable on the facility was pushed back—it was originally set to open at the end of this year—as AAC prioritized capital for other de novo projects and acquisitions, such as the completion of the newly licensed Laguna Treatment Hospital, a 93-bed chemical dependency facility in Aliso Viejo, Calif.
Acquired by AAC in early 2015 for an aggregate of $13.5 million, the Laguna hospital previously operated as a memory care center and will see approximately $5 million in total renovations. Now licensed, the facility is accepting admissions.
“Laguna Treatment Hospital fills a unique and rapidly expanding need for detoxification beds in the United States and particularly in California. With very few licensed Chemical Dependency Recovery Hospitals in the state, we expect this hospital to not only serve our existing 180 beds in San Diego and Temecula but to also provide high acuity detox services for the estimated 900 treatment clinics and centers in Southern California,” Cartwright said in a statement.
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