Capital One Closes $41.1 Million Mortgage for Pacific Northwest SNF Provider

Capital One provided a $41.1 million first mortgage and a $5 million senior credit facility for Prestige Care, a Vancouver, Wash.-based provider of skilled nursing, memory care, assisted living, and independent living communities, the lender announced.

Prestige Care will use the loan to purchase four skilled nursing and senior housing facilities in Washington and Idaho, as well as to refinance three facilities that it owns in Oregon and Washington. It will use the revolver to support corporate objectives and working capital needs.

The new acquisitions are Colonial Vista in Wenatchee, Wash. Hearthstone Cottage of Ellensburg in Ellensburg, Wash., Hearthstone Cottage of East Wenatchee in East Wenatchee, Wash. and Karcher Estates in Nampa, Idaho. Prestige is refinancing Coast Fork Nursing in Cottage Grove, Ore., Oregon City Health Care Center in Oregon City, Ore. and Prestige Assisted Living at Hazel Dell in Vancouver, Wash.

The McLean, Va.-based Capital One structured the real estate loan to enable Prestige to leverage the equity it had in three existing properties to finance the acquisition, Dague Retzlaff, senior vice president of Capital One Healthcare, said in the release. This allowed Prestige to purchase the facilities with less cash equity than if it had been a standalone transaction, he said.

The loan includes funds for capital improvements to the buildings.

Blueprint Announces Sale of Ohio Skilled Nursing Facility 

Chicago-based Blueprint Healthcare Real Estate Advisors facilitated the sale of Milcrest Nursing Center for $2.6 million.

The sale was conducted on behalf of a publicly-traded real estate investment trust (REIT) and a regional operator, both of which wanted to shed the non-core asset due to its limited capacity and age, according to a press release from Blueprint.

The facility was built in 1968 and renovated in 1998. It is licensed for 50 beds and features semi-private rooms.

Milcrest is the smallest skilled nursing facility in the area and the only one built before 2000, but has maintained consistent occupancy due to its proximity to the local hospital, the release notes. It was generating more than $3 million in total revenue at the time of sale.

The facility was sold to a family-owned, multi-faceted real estate organization looking to expand their footprint in the health care space.

The opportunity was sourced by Blueprint senior managing director and founding partner Ben Firestone and managing director Michael Segal. Senior associate Connor Doherty led the transaction.

Pisula Development Acquires Texas Transitional Care Facility in Joint Venture

The Woodlands, Texas-based Pisula Development Company recently announced its acquisition of Brightpointe at Rivershire, a transitional care facility located in the Houston suburb of Conroe, Texas.

The transaction, which closed on March 16, 2017, was completed by Conroe SNF Real Co. LLC, a joint venture between Pisula Development, Harrison Street Real Estate, a real estate investment management firm headquartered in Chicago, and local physicians.

The lender in the transaction was Woodforest National Bank.

The 150-bed facility, located near the Conroe Regional Hospital campus, is managed by an affiliate of Pisula Development Company.

Virginia Skilled Nursing Facility to Close Due to Building Issues

Newport News, Va.-based Riverside Health System announced in a press release that it will close its Riverside Shore Rehabilitation Center in Parksley, Va. on October 21 due to multiple building issues.

Repeated flooding and a recent lightning strike that affected the fire panel are among the reasons for the closure, the Delmarva Daily Times reported. Since a power fluctuation in July that caused the facility’s well pump motor to fail, the SNF has been testing and flushing the water supply. In the meantime, an emergency filtration trailer has been deployed and residents are drinking bottled water.

The skilled nursing facility’s infrastructure has “outlived its useful life expectancy,” said Ed Heckler, vice president of Riverside’s Lifelong Health division, in the release.

The facility currently has 89 long-term care residents that Riverside will relocate, in addition to 12 residents that are expected to be discharged to their homes within 60 days.

Riverside will help the facility’s 128 employees find positions within Riverside Health System or elsewhere, according to the release.

Written by Elizabeth Jakaitis

Photo Credit: “Construction” by Stephan Rush, CC BY-SA 2.0.