Bank Leumi USA this week announced the completion of a $23.5 million deal covering four skilled nursing facilities and one assisted living property operated by Prestige Care.
The family operator used the cash to refinance an existing asset-based loan revolver and a real estate term loan, with the goal of boosting liquidity and funding future expansions; the portfolio, with locations in Oregon, Washington, and Arizona, consists of 356 beds.
“As the long-term health care industry swiftly adapts to meet the needs of a growing aging population, super regional operators like Prestige Care are a critical part of the market,” David Paulson, Leumi’s chief banking officer, said in a statement announcing the deal.
The Bank Leumi deal represents a new banking partnership for Prestige Care, which runs 80 senior living and post-acute rehab properties in the West; the operator’s former lender exited the industry amid the pandemic, CFO Tom Mitchell said in a statement.
“Prestige conducted a competitive nationwide search and we are extremely pleased to announce Bank Leumi as our new banking partner, as they impressed us greatly with their commitment to our industry in these trying times,” he said. “We look forward to expanding our relationship with Bank Leumi as they expand their presence in our industry.”
Meridian, Hill Valley Reach $21.7M Deal
Skilled nursing operator Hill Valley Healthcare acquired a trio of Virginia senior housing and care facilities previously operate by the Riverside Health System in a deal pegged at $21.7 million.
Meridian Capital Group provided the acquisition financing, along with a $3.5 million accounts-receivable line and $500,000 in capital expenditure funds.
The three buildings — The Orchard in Warsaw, Riverside Convalescent Center in West Point, and Riverside Rehabilitation Center in Hampton — formally changed hands February 1.
“We are committed to building on Riverside’s mission to care for others as we would care for those we love and to ensure the ongoing success of these vital facilities,” Hill Valley COO Shimmy Idels said in a statement. “We are thankful to Riverside Health System for partnering with us through this process and look forward to supporting the communities we serve.”
Meridian’s Ari Adlerstein, Ari Dobkin, and Josh Simpson led the financial side of the transaction.
Tryko, Marquis Grow in Pennsylvania
Tryko Partners — a Brick, N.J.-based private equity firm — this week announced its acquisition of the formerly non-profit Regina Community Nursing Center in Norristown, Pa., a suburb of Philadelphia.
Tryko has installed its affiliate, Marquis Health Consulting Services, to support operations at the facility, which has been renamed Markley Rehabilitation & Healthcare Center; the investment firm has also planned $3.5 million in physical plant upgrades for the 121-bed skilled nursing property.
“This facility has significant upside potential,” Tryko director of acquisitions Uri Kahanow said in a statement announcing the deal. “It has good bones and is located in a prime market, one in which we have nearly a decade of experience and facilities that enjoy established partnerships with leading healthcare providers.”
Markley had been owned by a faith-based non-profit for 50 years prior to the deal.
“We were very impressed with Tryko’s professionalism and commitment,” Timothy Bonjo, secretary of the non-profit’s board of directors, said in the statement. “The team’s focus on supporting progressive skilled nursing will take the facility to the next level and enable the care of more clinically complex residents.”
Tryko partnered with IDB Bank to finance the deal, the first transaction involving the two companies.
The firm also owns four other SNFs in the region.
“Our commitment to the skilled nursing sector as a whole and the greater Philadelphia market, specifically, remains deep; we are here for the long term,” Kahanow said.