Strawberry Fields’ $3.15M Skilled Nursing Buy, Capital Funding’s Bridge Loan for Six Illinois Facilities

Strawberry Fields REIT this week announced the $3.15 million acquisition of The Waters of Muncie, a skilled nursing facility in Muncie, Ind.

The all-cash deal for the 72-bed facility now brings the real estate investment trust (REIT) to 74 nursing homes, a spokesperson for Strawberry Fields told SNN.

“The Waters of Muncie is a well-located facility in suburban Indianapolis that offers exceptional care and rehabilitation services,” Moishe Gubin, CEO of Strawberry Fields, said in a statement. “We have been leasing and subletting this property from the landlord since November 2011.”

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The facility is part of an Upper Payment Limit (UPL) program, a special kind of rate-boosting arrangement in Indiana, with Henry County Hospital.

Serving long and short-term residents, the facility provides memory care, rehab services, and comprehensive medical care, with average occupancy rates at 72% — and a census split among 72% Medicaid residents, 18% residents with private insurance, and 9% Medicare beneficiaries.

“Strawberry Fields is known as an active investor, working closely with lessees to ensure the quality of the facilities they own,” Gubin added. “We maintain good contact with our partners, visit the facilities we own regularly and continually monitor to ensure compliance with state laws. We are pleased to extend our portfolio of properties through this new acquisition.”

Infinity Healthcare Management is the chosen consultant; Infinity and its sister companies have a long-standing relationship with numerous other Strawberry Fields operator-tenants.

Capital Lands Funding for Six-SNF Deal

Capital Funding, LLC announced the closing of bridge-to-HUD financing for six nursing homes in Illinois.

The Baltimore-based Capital Funding provided 100% financing for the acquisition of a total of 594 beds — with plans to refinance the debt through the Department of Housing and Urban Development’s 232/223(f) refinance program.

Capital Finance, LLC also provided $7 million in working capital for the six-facility deal. 

Jeffrey Stein, executive managing direction, originated the transaction for CFG.

County Nursing Home Slated for $35M Renovation

The Sullivan County Health Care nursing and rehabilitation complex in Unity, N.H. received $35 million for a June renovation, according to a report in The Union Leader Journal of New Hampshire.

Mary Bourque, director of operations, pointed to necessary upgrades for the 156-bed facility before the Claremont City Council, the paper reported, detailing a complex that featured several buildings ranging from 50 to 70 years old. In addition to energy efficiency upgrades, the renovation goals also include the improvement of clinical care architecture, and additional common areas and bathrooms that more easily facilitate shower transports, the Union Leader Journal reported.

Overall bed count will stay the same, and the up-to-code renovations will allow for the addition of private-insurance and short-term rehab residents to the facility, which primarily serves long-stay Medicaid residents.

The $35 million budget involves costs for an approximate $2 million yearly bond payment, the Journal reported.

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