Hackensack Meridian Health, a New Jersey-based hospital system, acquired a trio of nursing homes in a $60 million deal designed to bolster its post-acute footprint.
The Bergen Record first reported the news Tuesday.
The 17-hospital network will operate the properties — Prospect Heights Care Center and Regent Care Center in Hackensack, N.J., and the West Caldwell Care Center in West Caldwell, N.J. — in a partnership with Tandem Management Co., according to the Record.
“Hackensack Meridian Health is committed to improving access to high-quality long-term and sub-acute care for patients and families across New Jersey,” Hackensack Meridian CEO Robert Garrett said in a statement announcing the deal. “We are excited to have these three facilities join our network, and this merger will elevate the standard of care for residents across the communities we serve.”
Stephen Baker, Hackensack Meridian’s president of post-acute care, framed the deal as a senior living play.
“We are redefining the standard of senior living with our outstanding services, premier facilities and state-of-the-art accommodations,” Baker said in the statement.
The three facilities have a total of 600 beds, which the Edison, N.J.-based Hackensack Meridian plans to use primarily for post-acute services.
“More and more health care is being delivered outside the four walls of the hospital,” Garrett told the Record. “Some patients that used to require an acute care stay can get treated on an outpatient basis.”
The facilities currently have “low occupancy,” executive Joe Lemaire told the publication, but the non-profit health system intends to boost census to 90% by the end of the year.
Meridian Clears $1B for the Year
Meridian Capital Group has closed $1.3 billion in senior health care and housing deals so far in 2019, the New York City-based real estate investment and finance firm announced Wednesday.
That total comes from 41 transactions in 22 states, including $80 million in acquisition financing for a five-SNF portfolio in Pennsylvania; $38.5 million toward the purchase of three SNFs and the refinance of five more in Minnesota and Wisconsin; and the $36.3 million sale of two SNFs in Virginia. The latter deal also included $33.8 million in acquisition financing and a $2.5 million line of credit for the properties.
An $8.3 million construction loan additionally contributed to Meridian’s 2019 deal haul, along with the $30 million acquisition of two Massachusetts SNFs and a $22 million refinance of six SNFs in Iowa.
Meridian’s senior housing and health care team — led by managing directors Ari Adlerstein and Ari Dobkin, along with senior vice president Josh Simpson — has landed more than $6 billion in financing since it launched in 2011.
Dwight’s $9.5M HUD Loan in Minnesota
Dwight Capital secured a $9.5 million loan for the Bayshore Residence & Rehabilitation Center, a 139-bed skilled nursing facility in Duluth, Minn.
The New York City-based lender originated the financing through the Department of Housing and Urban Development’s 232/223 program, which provides long-term loans at low rates for operators of SNFs, assisted living facilities, and other institutional sites of care.
Recently renovated, Bayshore features long- and short-term care services on a 5.2-acre campus.
Managing principal Adam Sasouness led the deal for Dwight.