Capital Funding Group Executes $2.7B in 2022 Financings; Evans Senior Investments Completes $39M Sale

Three skilled nursing properties in Pennsylvania comprising 395 beds and 32 senior housing units were purchased for $39M, or $91,000 per unit. The seller, represented by Evans Senior Investments (ESI), exited the long term care industry.

“The ESI Team was successfully able to showcase how a new regional owner/operator could eliminate the agency staffing issues by utilizing their regional recruiting network,” Henry Fuller, Senior Associate at ESI, said in a press release.

According to ESI, at the time of marketing, the average census was 64% with total portfolio revenue of $27,200,000 and net operating income of minus $1,500,000, or minus 5% net operating income margin. While under contract, census reached a low of 57% as a result of regulatory deficiencies and staffing shortages.

“ESI was successfully able to navigate headwinds of regulatory deficiencies, declining financial performance, and union negotiations all while keeping the purchase price the same as the original letter of intent,” Jason Stroiman, president and founder of ESI, said in a press release. 

CFG announces $2.7 billion in 2022 financing deals

Capital Funding Group executed more than $2.7 billion in financing deals last year, the firm announced on Feb. 14. The transactions included 24 HUD loans, in excess of $250 million, as well as bridge-to-HUD loans, in excess of $2.5 billion. CFG serves the long-term care, seniors housing and multifamily sectors.

“Although rising interest rates have created some uncertainty, we’re leaning in – and will continue to lean in – and getting creative in how we execute financing to help our clients grow. We look forward to another successful year ahead,” CFO Executive Managing Director Erik Howard said in a press release.

The 2022 transactions included the $317 million bridge loan to refinance a national skilled nursing portfolio.

Ziegler closes $47M in financing for Saint Therese of Corcoran

Senior living specialty investment bank Ziegler announced the successful closing of a $47,000,000 financing for Saint Therese of Corcoran LLC, and its sponsor, Saint Therese, for the construction of a new senior living community in Corcoran, Minnesota. The financing comprises $18,200,000 of Series 2022AB and $28,800,000 of Series 2023 Senior Living Revenue Notes placed with Bremer Bank.

“We are very grateful for the warm welcome from the Corcoran community and are pleased to be a part of Corcoran’s new town center. This year’s market volatility and economic conditions made for a challenging journey for the project financing. The combination of obstacles presented throughout the financing process required great creativity, expertise, and flexibility,” Calvin Shelangoski, CFO of Saint Therese, said in a press release.

Saint Therese is a Catholic senior living organization originally organized in 1965 as a single-site nursing home in New Hope, Minnesota. Now based in St. Louis Park, Minnesota, Saint Therese has grown across the Minneapolis-St. Paul metropolitan area as a provider of housing and supportive services with nearly 1,000 units offering independent living, assisted living, memory care, skilled nursing, inpatient/outpatient therapy, community wellness, and other related services.

Ziegler closes $29.2M in financing for Bishop Gadsden

Ziegler announced the closing of $29,200,000 in financing for Bishop Gadsden Episcopal Retirement Community, which is based in Charleston, South Carolina. 

Founded in 1850, the community at Bishop Gadsden consists of 268 independent living units, 79 assisted living units, 32 memory care units, 32 post-acute skilled nursing beds, and 68 long-term care beds.

In 2019, Ziegler financed a replacement health center and expanded assisted living units. The facility, named Gadsden Glen, recently garnered top honors in the skilled nursing/post-acute category of the 2022 Architecture & Design Awards bestowed by Skilled Nursing News’ sister publication, Senior Housing News.

Completed in May 2022, the facility consists of 32 memory care, 32 rehabilitation and 68 skilled nursing beds.

Bishop Gadsden is now planning a 15-unit independent living neighborhood known as The Meade. The new units will range in from 1,800 to 2,400 square feet.