A sweeping portfolio deal on behalf of Eagle Arc Partners marked the first transaction for Capital Funding Group’s new credit venture — with a $317.5 million price tag.
The Baltimore-based lending and finance firm closed the bridge-to-Department of Housing and Urban Development (HUD) acquisition loan through its CFG Credit Partners entity.
The $300 million-plus deal covers 18 skilled nursing facilities in Florida and one apiece in Georgia and Mississippi, along with $14 million in reserves for capital improvements.
“Today marks a historic day for CFG, as we formally launch our new credit venture and close on a landmark transaction, despite challenging macro headwinds,” CFG chairman Jack Dwyer said in a statement. “I am excited to announce that CFG Credit Partners will significantly expand our lending capacity.”
CFG Credit Partners serves as an off-balance-sheet credit firm under the management of CFG Asset Management, with the express goal of bolstering the financial player’s bridge-to-HUD lending business.
Eagle Arc, formerly known as BM Eagle Holdings, has emerged in recent years as a major portfolio force in the skilled nursing space. The New York City-based private investment firm — a joint venture led by affiliates of alternative asset manager BlueMountain Capital Management — came onto the scene in 2017 as the buyer in Kindred Healthcare’s $700 million exit from the nursing home business.
The company last year also picked up 28 Senior Care Centers-operated facilities in Texas and Louisiana for $282.5 million.
Elliott Mandelbaum, managing partner at Eagle Arc, told SNN earlier this week that the most recent southern portfolio transaction represented a solid long-term play for the company.
“We felt that these assets … were good long-term assets that we want to hold — very strong markets with very good demographics,” Mandelbaum said. “There’s going to be life after COVID. We’re going to get through it.”
Capital Funding Group executive managing director Erik Howard, director Craig Casagrande, and vice president Tim Eberhardt helmed the deal for the financial firm.
CFG has closed $1.1 billion in health care bridge loans this year so far, according to the company, with $350 million backed by HUD.