Summit REIT Acquires 14 Facilities in $125M Deal; Good Sam Divests Three SNFs in Wisconsin

Summit Healthcare REIT, Inc. acquired an interest in 14 skilled nursing and assisted living facilities in Indiana for $125 million, with plans to lease them back to the seller on a triple-net basis. The acquisition, announced Wednesday, was made through a newly formed joint venture among a wholly-owned subsidiary of Summit, a real estate holding company, and a global institutional asset management firm, with Summit holding a 15% membership interest.

The facilities have more than 1,100 licensed beds total.

“The new joint venture will continue to focus on quality regional operators, but on a larger scale,” Kent Eikanas, Summit’s president and COO, said in a release announcing the deal.

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Good Samaritan Sells Three Wisconsin SNFs

The Evangelical Lutheran Good Samaritan Society sold three SNFs — with a total of 193 units — in Wisconsin in a transaction facilitated by Blueprint Healthcare Real Estate Advisors.

The assets, which included 162 skilled nursing beds, 19 independent living units, and 12 age-restricted apartments, represented a non-core disposition for the Sioux Falls, S.D.-based senior living non-profit. The rural facilities had strong occupancy, quality mix, and per-resident-day revenues, but expense management was an issue, according to the Chicago-based Blueprint. The buyer was a growing owner-operator.

Blueprint’s Michael Segal and Amy Sitzman facilitated the transaction.

Monticello Provides $16M in Acquisition Financing for Tennessee SNF Portfolio

Monticello Asset Management, LLC provided $16 million in first-lien debt financing for the acquisition of two SNFs with a total of 303 beds in Tennessee. The transaction included a $3 million working capital loan to the operating companies of the properties, which was provided by Monticello Commercial Capital, LLC, Monticello’s asset-based lending group.

The borrower, an owner-operator with a current portfolio of 3,765 licensed beds and an existing relationship with Monticello, expects to receive a loan guaranteed by the Department of Housing and Urban Development (HUD).

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