The PACS Group closed on a 11-facility skilled nursing portfolio in Tennessee for an undisclosed amount, while CFG closed out five deals totaling $54 million in the last two months.

PACS Group Closes on Tennessee Portfolio Sale

The PACS Group (NYSE: PACS) on Dec. 1 closed on the operations of 11 skilled nursing facilities in Tennessee for an undisclosed amount, collectively comprising 1,310 skilled nursing beds. One more facility in the state is expected to close in Q1 of 2025, bringing the portfolio sale to 12.

PACS has now acquired a total of 38 facilities since Oct. 31, adding 4,700 skilled nursing beds to its portfolio. The announcement comes after the group in November delayed its Q3 earnings release as PACS carries out an internal audit and cooperates with a federal investigation into its referral and reimbursement practices.

Josh Jergensen, PACS president and COO, said the team remains focused on revolutionizing care delivery, leadership and quality as they enter new markets. PACS has a 4.0 average quality measure star rating across its facilities, calculated by the Five-Star Rating System, and has above average occupancy rates.

“We’re excited to close these latest acquisitions, which further expand PACS’ footprint to 17 states, bringing our services to more communities than ever before,” said Jason Murray, PACS chairman and CEO. “The business remains on solid footing and we are continuing to execute on our growth strategies by seeking prudent acquisitions and leveraging our decentralized leadership model.”

As one of the largest post-acute platforms in the country, PACS’ independent subsidiaries operate 314 post-acute care and senior living facilities across 17 states, serving more than 30,000 patients daily.

CFG Closes Five Deals Totaling $54M

Between mid-October and mid-November, Capital Funding Group (CFG) closed on five transactions totaling more than $54 million, supporting six health care facilities and two multi-family properties throughout the country.

The first deal was for a $2.72 million bridge-to-HUD junior term loan for the acquisition of two skilled nursing facilities, featuring a total of 194 beds in Maryland and Delaware. Next involved a $12.87 million HUD loan for refinancing existing debt for a 120-bed skilled nursing facility in South Carolina.

A third deal was for the $5.95 million HUD loan to refinance a 156-bed skilled nursing and assisted living facility in Ohio. Fourth was a $20.48 million value-add bridge loan for two multifamily properties totaling 181 units in Georgia and fifth was a $11.98 million bridge-to-HUD loan for the refinancing of two skilled nursing facilities in California, a total of 118 beds.

Financing for the California nursing homes consolidated existing debt and provided a dividend recapture for the borrower, who will exit with long-term HUD financing soon after closing, CFG said in a statement.

ESI Facilitates $500M Sale Involving CareTrust and American Health Partners

Evans Senior Investments (ESI) facilitated one of the most significant skilled nursing transactions in recent years, with a $500 million sale of a 31-facility portfolio in Tennessee and Alabama. That’s a total of 3,290 licensed beds at an average price of $152,242 per bed.

ESI confirmed this is the same deal that was announced in October by CareTrust REIT (NYSE: CTRE). Franklin, Tennessee-based American Health Partners sold its American Health Communities and Rehab America divisions to CareTrust as part of the deal, making American Health Partners more of a pure-play insurer with its remaining business lines.

CIBC Closes on $35M Loan, $1.5M Line of Credit for Virginia Facility

CIBC Bank USA closed on a $35 million commercial mortgage term loan and $1.5 million working capital line of credit for a 101-bed skilled nursing facility in Virginia.

The facility, built 15 years ago, was looking to refinance its debt, CIBC said in a statement, and has posted strong operating results with occupancy around 92% and an EBITDAR margin historically at 25%.

ESI Arranges Sale in Tennessee

Evans Senior Investments (ESI) managed the sale of Weakly County Rehabilitation and Nursing Center, a 136-bed skilled nursing facility in rural Tennessee for an undisclosed amount. ESI acted as the exclusive advisor to the Weakly County Commission.

Weakly was built in 1958 with expansions done over the years, and is located 100 miles west of Nashville, serving the community for decades, ESI said. At the time of marketing the facility was struggling with 47% occupancy and negative cash flows. But, the facility has untapped potential, ESI said.

The buyer is a regional owner-operator with holdings in neighboring states, and has leveraged resources from their existing operations to expand into Tennessee.

Blueprint Assists in $5.5M Illinois Sale

Blueprint assisted WellSpire in the strategic sale of Illini Restorative Care, a 120-bed skilled nursing, long-term care and sheltered care community in Silvis, Illinois for a purchase price of $5.5 million, or about $46,000 per licensed bed.

WellSpire is a joint venture between WesleyLife, Iowa’s largest nonprofit provider of services and care to older adults, and Genesis Health System, now MercyOne Genesis. The buyer is an Illinois-based private investor with a large ownership presence throughout the state, as well as its in-state operating partner and tenant.

Illini was built in 1968 and is licensed for 102 skilled nursing beds and 18 sheltered care beds, and is located on and adjoining the MercyOne Genesis Silvis Medical Center campus. The community generated more than $8 million in revenue and about 50% quality payor mix, Blueprint said in a statement.