Dwight Capital Closes $61M in HUD Refinancing for 250-Bed Nursing Home; Strawberry Fields Agrees to Acquire 8 Facilities with Over 1100 Beds

Strawberry Fields REIT entered into a purchase and sale agreement for eight health care facilities located in Missouri, while Dwight Capital closed a $61 million HUD refinance loan for a 250-bed SNF in New York.

Strawberry Fields Agreement

Strawberry Fields REIT (NYSE American: STRW) entered into a purchase and sale agreement for eight health care facilities in Missouri on October 8. The acquisition, valued at $87.5 million, is expected to close before year-end, subject to conditions.

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The facilities have a total of 1,111 licensed beds, and are currently leased to third-party tenants under a master lease agreement on a triple net basis.

The company plans to finance the purchase using its current working capital and funds from a third-party lender, according to a news report.

The acquisition is subject to substantial closing conditions, and Strawberry Fields REIT cautioned that the closing was not guaranteed.

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Dwight Capital closed a $61 million HUD refinance loan for a 250-bed SNF

Dwight Capital and its affiliate REIT, Dwight Mortgage Trust (DMT), successfully closed $279.7 million in real estate financings in September, including for three separate HUD loans, a skilled nursing facility in New York, and a skilled nursing portfolio in New Hampshire, among others.

During the month, Dwight Capital closed a $61 million HUD refinance loan for a 250-bed skilled nursing facility (SNF) in New York. The facility recently underwent comprehensive renovations, including updates to resident rooms, corridors, therapy areas, kitchens, and public spaces. Amenities include fine dining, room service, daily housekeeping, outdoor common areas, an on-site beauty salon, and organized social activities.

The commercial real estate finance company also originated a $39 million HUD refinance loan for a portfolio consisting of one SNF and a combined skilled nursing and assisted living facility (ALF), both located in Manchester, NH. The portfolio includes Villa Crest Nursing and Retirement Center, which features a 165-bed SNF and a 29-unit ALF, as well as Maple Leaf Healthcare Center, a 114-bed SNF. Collectively, these facilities offer a total of 308 beds. Previously, DMT closed a $31.5 million bridge loan across the two facilities.

Merchants Capital Completes $630M Securitization of Real Estate Loans, Some for SNFs

Merchants Capital announced the securitization of approximately $630 million in health care commercial real estate bridge loans. The loans were originated by VIUM Capital, Merchants’ joint venture partner, and underwritten and closed on the balance sheet of Merchants’ parent, Merchants Bank, within the past 16 months. The loans are intended to support the properties until they seek permanent financing through the U.S. Department of Housing and Urban Development (HUD).

The securitization pool contains 21 loans collateralized by 74 properties across 15 states for a variety of facilities, including skilled nursing, assisted living, memory care and independent living. The loans had a weighted average LTV of 69% and a weighted average debt yield above 15%.

Structured as a credit risk transfer, Merchants, in collaboration with ATLAS SP Partners as structuring agent and sole bookrunner, partnered with a large investment manager specialized in alternative assets to purchase the junior securities, which totaled 15% of the transaction. As part of its purchase, the investor retained the first loss Risk Retention certificates as a third-party purchaser.

Blueprint completes sale of ALF, SNF in Louisiana

Blueprint completed the sale of the Regency House Alexandria, located in Louisiana.

The facility consists of 10 assisted living beds and 60 skilled nursing beds, operating only as Medicare and Private Pay. The facility was generating $1.5 million of EBITDAR at the time of close, which was near stable.

Blueprint highlighted the facility’s attractive in-place HUD financing as well as strong performance and additional achievable upside via increased Medicare census.

Blueprint procured multiple offers from in-state and national buyers.

A national owner-operator was ultimately selected by the seller. The acquirer was selected due to their existing presence in the state of Louisiana as well as their experience with the HUD TPA process.

Blueprint structures lease with purchase option for Ohio skilled nursing facility

Blueprint structured a lease with purchase option for an Ohio-based skilled nursing facility.

Originally constructed in 1920 as the original site of McKinley High School, the facility was converted to skilled nursing in 1984 in order to fill the community’s evolving need for senior care.

Citing a desire to exit this asset, the established owner struggled due to the currently low Medicaid reimbursement rate and occupancy levels.

Blueprint structured an off-market lease with a purchase option with an acquirer seeking to expand its presence in northeast Ohio. The structure protected ownership’s downside while granting the incoming operator, and eventual purchaser, an operational runway to access debt by stabilizing operations, Blueprint said in a press release.

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