Ziegler closed $67.27 million and $82.9 million in financing for two properties, each with skilled nursing assets, while Strawberry Fields acquired Mabry Health for $6.7 million.
Strawberry Fields Acquires Mabry Health Care
Strawberry Fields REIT (NYSE: STRW) announced the completion of a $6.7 million acquisition of a healthcare facility in Gainesboro, Tennessee.
The property, Mabry Health Care & Rehabilitation Center, includes an 83-bed Skilled Nursing Facility and a 28-room Assisted Living Facility. This acquisition has been incorporated into an existing Infinity of Tennessee master lease and is expected to increase the company’s annual rents by $670,000, with a 3% annual increase provision, Strawberry Fields REIT said in a press release.
This marks Strawberry Fields REIT’s 15th facility in Tennessee, further expanding its presence in the state’s health care real estate market.
Strawberry Fields REIT, Inc., is a self-administered real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing and certain other healthcare-related properties. The Company’s portfolio includes 113 healthcare facilities with an aggregate of 12,800+ beds, located throughout the states of Arkansas, Illinois, Indiana, Kentucky, Michigan, Ohio, Oklahoma, Tennessee and Texas. The 113 healthcare facilities comprise 103 skilled nursing facilities, eight assisted living facilities, and two long-term acute care hospitals.
ESI Brokers Sale of Mabry Health Care & Rehabilitation Center to Strawberry Fields
Evans Senior Investments (ESI) arranged the sale of Mabry Health Care & Rehabilitation Center in Gainesboro, Tennessee.
Mabry Health Care, a family-owned nursing home founded in 1979, has served the Gainesboro community for over four decades. Located just 20 miles outside of Nashville, it has evolved to meet the needs of its residents. Originally focused solely on skilled nursing care, the center expanded its services in 2005 to include assisted living.
Today, the facility comprises 108 total beds, including 80 skilled nursing beds and 28 assisted living beds across 16 units.
However, despite its deep roots and longstanding presence in the community, Mabry Health Care was struggling with considerable challenges at the time it hit the market, ESI said in a press release. The community was operating at 71% occupancy and had received a 1-star rating from the Centers for Medicare & Medicaid Services (CMS). These obstacles, as well as the state’s market conditions, led the owner to explore options for transitioning out of the business.
ESI facilitated an off-market transaction, connecting the seller with Strawberry Fields REIT. To ensure a smooth transition, Strawberry Fields’ operator stepped in to assist with operations before the sale was finalized, protecting the asset’s longevity and maintaining consistent quality of care for residents.
Ziegler closed $82.9M in financing for Eskaton
Ziegler announced the closing of the Eskaton Obligated Group’s $82,895,000 Series 2024 Bonds through the California Municipal Finance Authority.
Eskaton, a California nonprofit public benefit corporation, is a regional aging services provider dedicated to enhancing the lives of older adults throughout Northern California for over 55 years. Eskaton was incorporated in 1967, as a California nonprofit public benefit corporation with beginnings in skilled nursing and acute care hospitals.
Currently, Eskaton and its related subsidiaries own or manage 25 senior housing communities with living options that include independent living, assisted living, memory care, skilled nursing, and affordable housing.
The Eskaton Obligated Group is made up of three members and consists of 5 communities.
The Series 2024 Bonds have a first-time rating of BBB by Fitch Ratings and were issued through the California Municipal Finance Authority. The Bonds consist of long-term tax-exempt fixed interest rate bonds achieving level debt service with a 20-year final maturity on November 15, 2044, Ziegler noted in a press release.
The proceeds of the Bonds, together with other available funds, to finance the capital improvements across the Obligated Group communities, refund all existing debt of Series 2012, 2013, and 2022 Bonds, pay a swap termination payment, and pay certain costs incurred in connection with the issuance of the Bonds.
Ziegler closed $67.27M in financing for Garden Spot Village
Ziegler announced the closing of Garden Spot Village’s $67,270,000 Series 2024 Tax-Exempt Fixed Rate Bonds.
“We are thrilled to have successfully completed this tax-exempt bond transaction,” said Nate Weber, chief financial officer at Garden Spot Village. “This financing not only addresses our immediate needs through key project funding but also strategically refinances existing debt, improving our financial position. With this enhanced stability, we are now well-positioned to explore potential expansion opportunities, allowing us to continue fulfilling our mission with greater strength and confidence.”
The Obligated Group consists of Garden Spot Village and its subsidiary, GSV LLC.
Garden Spot Village is a not-for-profit Pennsylvania corporation which owns and operates a life plan community (LPC), known as Garden Spot Village, located on an approximately 220-acre campus in New Holland, Pennsylvania. The community includes 621 independent living homes consisting of 306 apartments and 315 cottage-style homes, 65 personal care units, 40 memory support units and 73 skilled care beds.
Meanwhile, GSV LLC owns and leases a 50,000 square-foot ambulatory health care building known as the Center for Health. This is leased to WellSpan Health, a local non-profit hospital, with a variety of medical services available to residents of Garden Spot Village and the broader community.
The proceeds of bonds will be used to refund and retire the corporation’s outstanding Series 2019 bank obligations and finance the construction of a state-of-the-art cogeneration power plant, renovations to the corporation’s existing health center, and other capital expenditures.
The Series 2024 Bonds are rated BBB by Fitch Ratings and are issued through the Lancaster Municipal Authority. The 2024 Bonds have a final maturity of 35 years. The bonds were priced with a weighted average yield to call of 4.41% and a weighted average yield to maturity of 4.50%. The Series 2024 Bonds were sold without a debt service reserve fund. Investor demand for the issue was strong, with 31 institutions participating in the offering and significant distribution to Pennsylvania specific funds.
Garden Spot Village ranked #2 in Newsweek Magazine’s rankings of America’s Best Continuing Care Retirement Communities 2024.
