First Citizens Bank’s Healthcare Finance business served as lead arranger of $115 million in financing for the acquisition of eight skilled nursing facilities in Illinois.

The borrower is a Midwest-based healthcare real estate investment and management company that invests in a variety of post-acute facilities, with investments in over 24 states, First Citizens said in a press release.

The eight facilities covered by this transaction represent more than 1,500 licensed beds, which typically offer care to individuals who need rehabilitation from injury or wound care, or who suffer from serious or persistent health issues requiring 24-hour medical attention.

“We are pleased to expand our financing for skilled nursing facilities, which are a critical component of the post-acute spectrum of care,” said William Douglas, head of First Citizens Healthcare Finance.

First Citizens Healthcare Finance provides financing and banking solutions to middle market healthcare companies across the U.S. 

Summit Sells 3-SNF Portfolio for $30M

Summit Healthcare REIT sold a portfolio of three skilled nursing facilities to affiliates of its current operator for $30 million.

Located in San Bernardino County, California, the portfolio consists of a total of 191 licensed beds, and was sold on Sept. 6.

The sale of this portfolio yielded an internal rate of return (IRR) of over 50% for Summit, the company said in a press release Tuesday. The transaction was conducted without the aid of an outside brokerage firm.

“The impressive return on the sale of this portfolio is another step in the right direction for Summit,” Chief Executive Officer Elizabeth Pagliarini stated. “We continue to make material headway with the strategic plan we implemented last year after my appointment to CEO. I remain optimistic about the future and our ability to deliver value to our shareholders.”

California-based Summit is a publicly registered non-traded REIT that is currently focused on investing in senior housing real estate located throughout the United States. The current portfolio includes interests in 36 senior housing facilities in 11 states.

CIBC provides $44M in financing to Embassy Healthcare for Ohio SNFs

CIBC Bank USA provided $44 million in financing to Embassy Healthcare to refinance three Ohio skilled nursing properties and provide working capital across Embassy’s growing portfolio of strategic assets. The three Ohio nursing homes had been purchased several years ago, and management greatly improved performance under the Embassy operating model.

Peter Kane and James Harper handled the transaction for CIBC Bank USA.

ESI Arranges the Sale of a CCRC in Pennsylvania

Evans Senior Investments (ESI) arranged the sale of The Patriot, a Continuing Care Retirement Community (CCRC) in Somerset, Pennsylvania. The transaction was executed on behalf of a non-profit organization.

The CCRC offers a diversified unit mix, including 100 licensed skilled nursing beds, 47 personal care units, and 2 independent living units. 

At the time of marketing, the community was struggling with occupancy, reaching only 77% in skilled nursing and 47% in personal care beds. Financial pressures ultimately led the owner to default on its bond debt, which triggered a Section 363 bankruptcy process.

By targeting groups of qualified buyers, ESI was able to maximize the value of The Patriot, securing a stalking horse and multiple rounds of competitive bidding at a court auction. In partnership with the legal team at Duane Morris LLP, ESI effectively navigated the bankruptcy proceedings, maximizing value and minimizing the closing time frame.