Harborview Capital Partners this week announced a raft of skilled nursing deals with a total of more than $191 million in acquisition and refinance loans.
First up, the New York City-based real estate finance and advisory firm teamed with Meridian Capital Group to provide $93.7 million for the acquisition of 19 facilities in the western U.S.
The portfolio deal saw a West Coast-based operator pick up the operations and real estate of six skilled nursing facilities, as well as the leasehold rights to an additional 13 properties. Fourteen of the properties are located in California, along with four in Washington and one in Nevada, for a total of 1,894 beds.
The package consisted of $65.7 million in senior financing and a $28 million revolver from a commercial bank.
Next, Harborview announced the $81 million refinance of a portfolio of four skilled nursing facilities and one assisted living property in Maryland on behalf of an owner based in New Jersey.
The Garden State firm recently purchased the assets; the refinance cash comes with a four-year term and a $20 million, limited-recourse cash-out.
Harborview’s Ephraim Kutner, Jonathan Kutner, and Eli Kutner led the deal.
Finally, the company announced the $12.8 million refinance of a 200-bed skilled nursing facility and a 262-bed assisted living facility in Queens, N.Y.
Matt Hedvat and David Nussbaum originated the $6.85 million loan for the SNF, while Eli Kutner handled the $6 million for the assisted living property. Both loans were provided by regional banking partners.
Coronavirus Causes Receivership in RI
The COVID-19 crisis forced a single-site nursing home company into receivership in the state of Rhode Island, according to a report this week from GoLocalProv.
The 200-bed Hopkins Manor, located in North Providence, cited a growing debt burden in its receivership petition, according to the outlet.
“The Respondents’ fiscal distress has been exacerbated by the ongoing COVID-19 pandemic, which has resulted in a decrease in the Respondents’ already-limited revenues,” Hopkins Manor claimed in its formal receivership petition, per GoLocalProv. “Moreover, the Respondents recently discovered that certain residents and staff of the Hopkins Manor nursing home have contracted COVID-19, which is expected to further erode the Respondents’ financial condition and outlook. Petitioner believes that there is a risk of corporate assets being wasted or lost.”
Receivership serves as a kind of bankruptcy alternative for nursing homes. A judge appoints a temporary receiver, usually a lawyer, tasked with stabilizing the facility’s finances in anticipation of a sale to another operator, or a gradual wind-down of operations.
In this case, Judge Brian Stern installed Shechtman Halperin Savage partner Jonathan Savage as “special master,” GoLocalProv reported.
Evans’s $4.3M Sale in Rhode Island
Evans Senior Investments recently handled the $4.3 million sale of Elderwood at Riverside, a skilled nursing facility in Providence, R.I., according to a release posted on REBusiness Online.
The former owner of the 57-bed property, built in 1962, decided to sell after regulatory issues stymied an original plan to transfer the bed licenses elsewhere in Rhode Island, according to the post.
The transaction marks the first entrance into the Rhode Island market for the buyer, an owner-operator based in the Southeast.
Companies featured in this article:
Evans Senior Investments, Harborview Capital Partners, Meridian Capital Group
