Capital Funding Backs Portopiccolo’s $36.9M Pickup; $2.5M Nursing Home Property Sells for $250K

Capital Funding, LLC last week announced its involvement in a $36.9 million deal that saw The Portopiccolo Group pick up a pair of skilled nursing facilities in Virginia and Maryland.

The transaction covered the Iliff Nursing and Rehabilitation Center, a 130-bed facility serving both pediatric and geriatric residents in Dunn Loring, Va., and the Fox Chase Rehabilitation and Nursing Center — a 74-bed facility for geriatric residents in Silver Spring, Md.

Accordius Health, an subsidiary of the Englewood Cliffs, N.J.-based Portopiccolo, will take over day-to-day operations of both properties.

Advertisement

The Baltimore-based Capital Funding put together a package that included a $30.6 million senior loan, a $3.8 million mezzanine loan, and a $2.5 million accounts receivable line of credit for working capital. That total brought Portopiccolo 90% of the way toward the final transaction costs, with a $2.7 million capex reserve for future renovations.

Led by CEO Simcha Hyman, the family-owned Portopiccolo owns multiple skilled nursing facilities across the country.

Capital Funding’s Tim Eberhardt originated the loan package.

Closed Skilled Nursing Facility Sells Well Below $2.5M Value

A defunct skilled nursing facility valued at $2.5 million sold last week for just $250,000, and the new buyers may be looking for uses beyond senior care.

The Arcadia Nursing Home and Quail Run Assisted Living Center in Gargatha, Va. was sold to an affiliate of Commonwealth Senior Living, according to a report from Delmarva Now. The property — which once featured 60 SNF beds and 42 assisted living units — fell into receivership in 2017 and closed in 2018 after no buyer emerged to take it over on a permanent basis, according to the outlet.

The Baton Rouge, La.-based American Family Services had run the facility before it entered receivership, which officials initiated after a loan default.

Mark Hubbard, a spokesman for Commonwealth Senior Living, was mum about the company’s plans for the site when reached by Delmarva Now.

“Senior housing did not work at the Quail Run location, so we are looking at alternative uses,” Hubbard told the outlet. “Commonwealth Senior Living at the Eastern Shore has enjoyed our partnership with the community and the smooth transition that has occurred at that location.”

Retirement Campus Plots $23M Nursing Center

The Bethea Retirement Community in Darlington, S.C. will soon break ground on a $23 million skilled nursing and rehab center to replace its existing 1950s-vintage SNF, local station WMBF reported last week.

The new SNF will have 88 private rooms for skilled care and 66 private rooms for long-term residents, officials told the station. Management plans to use the facility and its upgraded amenities to attract residents from outside the retirement campus.

“It’s going to allow us to really change the way we’re delivering care and services,” Ben Spurling, the community’s executive director, told the station.

Kindred Plans New Rehab Hospital

Kindred Healthcare last week received government approval to build a new freestanding rehabilitation hospital in Nashville, Tenn.

Developed in conjunction with hospital system Ascension Saint Thomas Health, the facility will feature 40 beds and replace the current acute rehab unit at Saint Thomas Midtown Hospital, focusing primarily on residents who need extended inpatient care for neurological and cardiovascular issues.

“We partner with leading health systems across the country to provide intensive medical and rehabilitative care,” Jason Zachariah, president of Kindred Rehabilitation Services, said in a statement. “We are excited to address the growing need for inpatient rehabilitation services and to improve the lives of Tennessee citizens through this partnership with Ascension Saint Thomas.”

Once a dominant player in the skilled nursing space, Kindred reached a deal to sell all of its SNF assets in 2017.

Companies featured in this article:

,