Evans Senior Investments (ESI) has arranged a lease transaction for a substantial skilled nursing and supportive living portfolio that spans across Illinois and Missouri. ESI successfully secured a tenant and finalized a ten-year lease agreement for this portfolio, which encompasses 13 communities and over 1,600 licensed beds in both states. The lease spans a decade and includes a purchase option for added flexibility, ESI said in a press release.
“This portfolio represents Evans Senior Investments’ ability to secure a tenant for a portfolio that was a turnaround, given the tight labor market and inflation pressure on expenses,” Hank Fuller, Director at ESI, said in a press release.
Evans Senior Investments ultimately chose a regional Midwest group as the tenant. The selection was made considering the portfolio’s scale and its potential for value enhancement, making it an advantageous transaction for both the tenant and the landlord, ESI said in a press release.
CIBC Bank USA Facilitates $12 Million Financing Package for Kansas Skilled Nursing Facility
CIBC Bank USA has granted a cash-out refinancing of $12 million for a 85-bed skilled nursing facility located in Kansas.
The financing is paired with a non-revolving line of credit for capital expenditures amounting to $1.5 million and a revolving line of credit for working capital set at $500,000.
The facility has shown positive trends in historical performance over the past year, with improvements in both census and operating leverage, CBIC said. The current operator will remain in their role, overseeing the day-to-day operations of the facility. Looking ahead, it is anticipated that occupancy will be maintained in the mid-80% range, accompanied by ongoing enhancements in operating margins.
G Capital Markets Finances Skilled Facility in Wisconsin
G Capital Markets recently facilitated the long-term refinancing of a facility offering skilled nursing and assisted living services in Plum City, Wisconsin. The property, initially constructed in 1987 and updated in 2005, underwent further expansion in 2014 to include assisted living facilities. The overall project encompasses 65 beds distributed among 41 private and semi-private units, with 70% dedicated to skilled nursing and 30% to assisted living.
The community consistently maintains an occupancy rate exceeding 80% with a substantial debt service coverage of 2.5 times, G Capital Markets said in a press release.
A HUD takeout loan was secured to settle the remaining balance of a term loan portfolio credit facility previously arranged by G Capital’s founder, Grant Goodman. The sponsor, an owner/operator based in Nevada, specializes in managing and investing in senior care properties across various states in the country.
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