First Citizens Bank's Healthcare Finance division has successfully arranged $115 million in financing to acquire eight skilled nursing facilities in Illinois. The borrower, a Midwest-based healthcare real estate investment and management company, has a diverse portfolio of post-acute care facilities across more than 24 states. The eight facilities involved in this transaction collectively represent over 1,500 licensed beds. These facilities primarily provide care for individuals needing rehabilitation, wound care, or those requiring 24-hour medical attention due to severe health conditions.
"We are pleased to expand our financing for skilled nursing facilities, which are a critical component of the post-acute spectrum of care," said William Douglas, head of First Citizens Healthcare Finance. First Citizens Healthcare Finance is known for offering tailored financing and banking solutions to middle-market healthcare companies throughout the United States.
Summit Healthcare REIT Sells Three-SNF Portfolio for $30 Million
In a separate transaction, Summit Healthcare REIT announced the sale of a portfolio consisting of three skilled nursing facilities in San Bernardino County, California, to affiliates of its current operator for $30 million. This portfolio includes 191 licensed beds and was sold on September 6.
The sale generated an impressive internal rate of return (IRR) of over 50% for Summit. "The impressive return on the sale of this portfolio is another step in the right direction for Summit," said Chief Executive Officer Elizabeth Pagliarini. Summit, a California-based, publicly registered, non-traded REIT, continues to focus on investing in senior housing real estate across the United States. Its current portfolio comprises interests in 36 senior housing facilities across 11 states.
CIBC Provides $44 Million Financing to Embassy Healthcare for Ohio Nursing Homes
CIBC Bank USA provided $44 million in financing to Embassy Healthcare to refinance three skilled nursing facilities in Ohio and provide working capital for the Embassy's expanding portfolio. These Ohio facilities were acquired several years ago, and the Embassy's management has significantly improved their performance under its operating model. Peter Kane and James Harper facilitated the transaction for CIBC Bank USA.
ESI Arranges Sale of The Patriot CCRC in Pennsylvania
Evans Senior Investments (ESI) successfully arranged the sale of The Patriot, a Continuing Care Retirement Community (CCRC) in Somerset, Pennsylvania, on behalf of a non-profit organization. The community features a diverse mix of units, including 100 licensed skilled nursing beds, 47 personal care units, and 2 independent living units.
At the time of the sale, The Patriot faced occupancy challenges, with 77% occupancy in skilled nursing and 47% in personal care beds. Financial difficulties led the owner to default on its bond debt, triggering a Section 363 bankruptcy process. ESI maximized the community's value by attracting a group of qualified buyers, securing a stalking horse, and conducting multiple rounds of competitive bidding during a court auction. In partnership with Duane Morris LLP's legal team, ESI navigated the bankruptcy proceedings to maximize value and expedite the closing process.
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