$285M Bridge-to-HUD Financing Secured for 16-SNF Portfolio

Capital Funding Group announced on Monday that it closed $285 million in financing for the acquisition of a skilled nursing portfolio secured by 16 facilities in the mid-Atlantic region, in partnership with its credit venture CFG Credit Partners.

The bridge-to-HUD [Department of Housing and Urban Development] financing was for “a nationally recognized borrower” who is “an industry-leading provider of skilled nursing facilities,” according to the press release announcing the transaction.

The transaction is the second financing loan of more than $275 million closed by CFG in the last two quarters; the CFG family of companies has closed $451.4 million in health care real estate bridge loans, as well as $237.5 million in HUD mortgages in 2021.


CFG executive managing director Erik Howard and vice president Tim Eberhardt originated the transaction, according to the press release announcing the deal.

The announcement comes in the same month as the announcement of a bridge loan of $57 million for another SNF portfolio, albeit one with four facilities.

Before the COVID-19 pandemic hit in full force in 2020, HUD was taking a harder line on its underwriting and approval process, several lending experts indicated – a process that had already been stringent. The shift came after a record-setting default by a nursing home chain that was publicized in the New York Times in 2019.


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