In a recent announcement, Lument, a leading financial services provider, has revealed the successful closure of a $46.3 million refinancing deal on behalf of SanStone Health & Rehabilitation. SanStone is a prominent operator of 18 rehabilitative care communities situated across North Carolina.
The multi-million-dollar transaction comprises two loans backed by the U.S. Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA), totaling $39.5 million. Additionally, a bridge loan of $6.8 million was secured. Notably, the FHA loans feature a lengthy 35-year term, effectively converting existing short-term, variable rate debt into a stable, long-term fixed-rate financing arrangement.
The focus of these transactions revolved around three distinct healthcare facilities within North Carolina, namely Wilkes Health & Rehabilitation, a skilled nursing facility (SNF) based in North Wilkesboro with a total of 97 units and 130 beds, Hickory Falls Health & Rehabilitation, another SNF located in Granite Falls boasting 70 units and 120 beds, and Wilkes Assisted Living, an assisted living (AL) community in Wilkesboro offering 102 units.
“These successful closings are the most recent wins in a comprehensive strategy to help grow SanStone’s portfolio, expand its best-in-class operating platform across the state of North Carolina, and ultimately put in place beneficial, long-term financing at its communities,” Kevin Oakley, who spearheaded the transactions for Lument, said in a press release.
CareTrust REIT Completes Joint Venture Investment in La Fuente Post Acute Skilled Nursing Facility
CareTrust REIT (NYSE: CTRE) has recently concluded a joint venture investment in the acquisition of La Fuente Post Acute, a 187-bed skilled nursing facility located in Vista, California.
The transaction, subject to regulatory approval, will result in Bayshire Senior Communities, an existing tenant of CareTrust, operating the facility under a newly established 15-year lease agreement with the joint venture landlord.
In this venture, CareTrust joined forces with a third-party regional healthcare real estate investor. The total investment made by CareTrust, combining common equity and preferred equity, amounts to $25.5 million.
The initial contractual yield on CareTrust’s combined preferred and common equity investments in the joint venture stands at approximately 9.7%. The lease terms include provisions for 3% fixed annual rent escalators and two options for 5-year lease extensions. CareTrust holds the position of managing member within the joint venture entity.
“Our relationship with CareTrust has been transformative for our company. We are thrilled that this transaction gives us the opportunity to continue growing with CareTrust as we further develop what is already a valued business relationship,” Scott Kirby, Chief Executive Officer of Bayshire Senior Communities, said in a press release.
The investments required for this venture were financed using cash reserves held by CareTrust. The completion of this joint venture investment highlights CareTrust’s ongoing commitment to expanding its portfolio and facilitating mutually beneficial partnerships within the senior healthcare sector.
“Bayshire’s focus on patient care and their proven versatility in improving operations at their buildings has continued to impress us,” James Callister, Chief Investment Officer at CareTrust, said in a press release. “It’s exciting for us to help facilitate the growth of a quality operator like Bayshire.”
Blueprint closes REIT to REIT sale of Virginia Skilled Nursing Facility; Capital Funding Group Successfully Secures $15.49 Million HUD Loan for Skilled Nursing Facility
Blueprint oversaw the sale of The Laurels of Willow Creek, a 120-bed skilled nursing and rehabilitation facility situated in the Midlothian suburb of Richmond.
The facility, originally constructed in 1991 with a subsequent addition in 2018, comprises 36 private suites and 42 semi-private rooms. Recognized as one of the region’s top care facilities, The Laurels of Willow Creek has consistently demonstrated robust operational performance, maintaining stable census and cash flow.
Leveraging the positive performance trends stemming from Virginia’s Medicaid rate enhancement incentives, Blueprint said they employed creative strategies to navigate the unique landlord-tenant structure. This approach resulted in an exceptional value proposition for the sale transaction, benefiting both the REIT buyer and the seller, while ensuring uninterrupted operations during and after the closing phase.
Notably, Blueprint expedited the transaction by working closely with all parties involved, successfully completing the sale in just around 60 days. The final market value achieved for this transaction represented a highly favorable outcome for the seller.
Blueprint also oversaw the sale of a portfolio consisting of five facilities with a total of 326 beds, was primarily constructed in the early 1990s and is situated in various locations across central and western Virginia. These facilities encompass a range of 57 to 89 licensed beds and have predominantly received 4 and 5-star ratings from the Centers for Medicare & Medicaid Services (CMS), indicating their strong performance and relatively stable occupancy and financial performance.
Blueprint collaborated directly with the existing operator, not only facilitating the acquisition of the real estate but also securing the necessary equity and debt financing to support the portfolio acquisition.
Blueprint said that capitalizing on the favorable performance trends and growth potential, driven in part by Virginia’s Medicaid reimbursement increases, Blueprint effectively navigated the complex capital markets environment, creatively structuring and completing the transaction.
Capital Funding Group Successfully Secures $15.49 Million HUD Loan for Skilled Nursing Facility
Capital Funding Group (CFG) announced the successful closing of a substantial $15.49-million HUD loan. The financing endeavor was aimed at supporting the refinancing of an existing bridge loan, previously executed by CFG, and transforming it into a HUD loan. In addition to this significant feat, CFG also managed to refinance an additional debt associated with a comprehensive facility remodel completed by the borrower before submitting to HUD.
The $15.49-million HUD loan, earmarked to bolster a 118-bed skilled nursing facility located in the heart of Arizona, officially concluded on August 17, 2023, on behalf of a nationally renowned borrower.
“The transaction is a testament to the long-standing relationships we maintain with our clients, and our commitment to taking on client goals as our own,” CFG’s Managing Director of Long-Term Care, Craig Casagrande, said in a press release. “Whether we execute a bridge loan and service it through the life of the loan, or go a step further and later refinance that loan into a HUD loan, with our one-stop-shop offerings, we do whatever it takes to help our clients grow.”
This recent financing follows closely on the heels of the company’s previous activity: the closing of a $7.2 million HUD loan, which similarly supported the refinancing of an existing bridge loan that had been orchestrated by CFG.
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