|Addiction Treatment Industry Newswire|
|02/26/2015 -ATIN – American Addiction Centers (NYSE:AAC) has taken a major step toward forming its strategy for the Northeastern part of the country and to service potential clientele in the New York City area by closing on a deal for a big property in northern New Jersey, the purchase of which CEO and founder Michael Cartwright has described to Treatment Magazine as a critical development for the newly public company. Just recently American Addiction Centers acquired a chain of outpatient clinics in Rhode Island, but the acquisition of the property in New Jersey is a completely different type of deal than the one in Rhode Island, and one that according to very recent press releases will be getting a major multi-million investment that is one of the largest to be made recently to a property in the addiction treatment marketplace.
Conversion of Old Mansion, Convent
According to a press release issued Tuesday, American Addiction Centers says it plans a total “aggregate” investment of almost $23M in the property, which given the fact it was originally built in the 1861, according to the press release, is a highly historic one that came with a purchase price of $6.5M. The property, according to American Addiction Centers, is located in Ringwood, NJ, on nearly 100 acres and was most recently used as a convent. The planned opening of the facility, which American Addiction Centers has yet to name and says is about an hour from the airport in Newark, NJ, and New York City’s LaGuardia Airport, is late in the second half of 2016 the company says, with construction expected to start this summer on a facility that ultimately will have 150 beds, the company said.
Underpinning the Value of New Jersey Centers
There recently has been legislation introduced in the state capital of Trenton that is highly favorable to behavioral healthcare and addictions treatment providers and that seeks to put more of the decision to admit and other “utilization review” decisions in the hands of addiction treatment and behavioral health providers. Should such type legislation pass in Trenton, it would likely underpin the value of addiction centers throughout the state making big investments like the one being made by American Addiction Centers in this new facility seem all the more like a good idea.
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