MonticelloAM provided $87 million in bridge and working capital financing for a skilled nursing portfolio based in Florida, while CFG provided financing to 16 skilled nursing facilities (SNFs) in California, North Carolina, Iowa, and Florida.

CFG provides $76M in financing for 16 SNFs

Capital Funding Group (CFG) announced the closing of four transactions totaling more than $76 million in September. The financing supported 16 nursing homes and was executed on behalf of nationally recognized borrowers, the company said in a press release this week.

For the four transactions, $24.35 million was for a bridge-to-HUD loan for the refinancing of two skilled nursing facilities, supporting a total of 246 beds in North Carolina. The financing closed on Sept. 5.

And, a $13.68 million HUD loan was for the refinancing of a skilled nursing facility, supporting 138 beds in California. The financing closed on Sept. 18.

Meanwhile, a $20.64 million bridge-to-HUD loan was used for the refinancing of 9 skilled nursing facilities, supporting 471 beds in Iowa. The transaction refinanced an existing loan, which CFG closed in September 2020, providing additional capital to leverage the portfolio based on current performance and prepare for a future exit with permanent HUD financing. The financing closed on Sept. 27.

Last, a $18 million bridge-to-HUD mezzanine loan was provided for the refinancing of four SNFs, supporting 551 beds in Florida. The financing closed on Sept. 30. This loan built on $39 million of existing senior lender debt previously executed by CFG, which brought the total refinancing package to $57 million.

Headquartered in Baltimore, Maryland, CFG is a full-service provider of comprehensive financing solutions for the national health care industry, focusing on the long-term care, assisted living and hospital sectors, and multifamily industry.

MonticelloAM provides $87M in financing for 450-Bed Florida portfolio

MonticelloAM, a specialized multifamily and seniors housing bridge lending platform, announced the closing of $87 million in total bridge and working capital financing for a portfolio of skilled nursing facilities located in Florida.

Proceeds from the $80 million bridge loan were used to refinance the existing debt on four SNFs. The loan carries a 24-month term with two six-month extensions for the borrower.

“We were thrilled to strengthen our relationship with an existing borrower team by providing bridge and working capital financing for their skilled nursing properties. The MonticelloAM team is committed to being a collaborative partner to our healthcare clients with tailored capital solutions that help them achieve long-term success,” Joseph Borenstein, head of the MonticelloAM’s health care sales desk, said in a press release.

The $7 million working capital revolver will be used to manage day-to-day operational expenses for the four properties covering over 450 skilled nursing beds.

ESI arranges sale of 165-Bed SNF in Boston

Evans Senior Investments (ESI) brokered the sale of Advocate Healthcare of East Boston, a 165-bed skilled nursing community in the heart of Boston, Massachusetts. The sale was executed on behalf of an institutional owner looking to recycle capital and shift its investment focus.

At the time of ESI’s engagement, the facility was operating at an 83% occupancy rate and held a 2-star CMS rating with an abuse icon from the Centers for Medicare and Medicaid Services (CMS). Operational challenges included managing high costs due to agency staffing, a large number of three-bed wards, and underutilized areas, such as the adult day care center and potential dialysis center. These factors hindered the community from reaching its full potential.

By highlighting the facility’s strategic location near 12 major hospitals, the potential for optimizing revenue through Massachusetts’s acuity-based PDPM payment model, and the recently secured behavioral health contract, ESI positioned Advocate Healthcare of East Boston as an attractive acquisition opportunity, ESI said in a press release.

The facility was ultimately acquired by an experienced regional operator, marking its first acquisition in the SNF space. ESI not only guided the buyer-operator through the complexities of the transaction but also facilitated a regional capital partner to ensure the deal’s success.