The Portopiccolo Group recently expanded its skilled nursing ownership footprint with the assistance of Capital Funding Group, which bankrolled the acquisition of a Virginia facility and the refinance of a second property in Kentucky.
The $14.5 million bridge-to-Department of Housing and Urban Development (HUD) loan allowed the Englewood Cliffs, N.J.-based Portopiccolo purchase Emporia Manor, a 120-bed SNF in Emporia, Va. The transaction also included a refinance on Sycamore Heights Health and Rehabilitation, a 96-bed facility in Louisville, Ky., as well as capital funds for both facilities.
Portopiccolo subsidiary Accordius Health will operate Emporia, while Sycamore remains under the control of Clearview Healthcare Management.
The deal marks the third collaboration between the Baltimore-based CFG and Portopiccolo, a family-owned private equity company with a focus on skilled nursing assets. Capital Finance LLC, a CFG affiliate, also consolidated existing lines of credit into a single $3.5 million loan for ongoing working capital as part of the transaction, the lender announced.
“CFG was able to underwrite to the projected stabilized performance of these assets, despite recent financial weakness experienced with previous ownership,” Portopiccolo CEO Simcha Hyman said in a statement.
CFG vice president of real estate finance Tim Eberhardt and Capital Finance LLC managing director Jeffrey Stein originated the respective transactions.
SLIB’s Two-Property Deal in Tennessee
Senior Living Investment Brokerage (SLIB) handled a two-SNF sale in Tennessee, facilitating the handoff of the Mt. Pleasant Health & Rehab Center in Mount Pleasant and Trinity Health & Rehabilitation Center in Lenoir City.
Both feature a mixture of skilled nursing beds and senior living amenities: The Mt. Pleasant property has 72 SNF beds and 30 independent living units branded as the Pleasantwood Apartments, while Trinity boasts 104 skilled beds and a vacant 16-unit assisted living area.
The Glen Ellyn, Ill.-based SLIB brokered the sale on behalf of a regional real estate firm looking to focus on its core business of continuing care retirement communities (CCRCs), while the buyer was a local owner-operator seeking to expand in Tennessee.
“This was a win-win transaction where the seller divested two non-core assets and the buyer enhanced their existing portfolio,” SLIB managing director Ryan Saul said in a statement announcing the deal.
Saul, Dan Geraghty, and Brad Clousing led the transaction for SLIB.
Harborview’s $7M Deal in Illinois
Harborview Capital Partners this week announced the successful completion of a $7 million HUD loan for a 96-bed skilled nursing facility in Lake County, Ill.
Originated for a repeat Harborview customer, the loan has a 35-year amortization rate; principals Ephraim Kutner and Jonathan Kutner led the transaction.
The Lawrence, N.Y.-based Harborview also refinanced a group of HUD-backed skilled nursing loans totaling $53 million, reducing annual payments on a portfolio with more than 450 skilled nursing beds across Illinois and New Jersey. Gershon Yarmush, the company’s chief credit officer, led that deal on behalf of the borrowers.