Strawberry Fields to Buy Facilities in Kansas for $24M

Strawberry Fields REIT (NYSE American: STRW) is set to purchase six long-term care facilities in Kansas for $24 million using current working capital, consisting of five nursing homes and one assisted living property.

All 354 licensed beds will be leased to Advena Living, led by Willie Novotny, its founder. The lease covers an initial 10-year period and includes two 5-year tenant options on a triple-net basis, the REIT said in a statement.

The lease will increase annual rents by $2.4 million and is subject to 3% annual increases. Strawberry Fields anticipates closing on the acquisition prior to year-end but makes no assurances.

The REIT’s portfolio currently consists of 123 health care properties across 10 states, 112 of which are skilled nursing facilities.

Strawberry Fields also completed the acquisition of eight facilities in Missouri for $87.5 million, the REIT announced on Dec. 20.

“Missouri is a new state for [Strawberry Fields] and brings a strong local third-party operator,” Moishe Gubin, Strawberry Fields CEO and chairman, said in a statement. “This acquisition is a great example of a deal type the Company is looking for and anticipates similar future deals which will allow the Company to continue to grow in its disciplined manner.”

MonticelloAM, Huntington Provide $400M to Refinance Portfolio

MonticelloAM and Huntington National Bank acted as joint lead arrangers in the closing of a $400 million bridge loan for a 29-facility skilled nursing portfolio across Kentucky and Tennessee.

The portfolio comprises over 2,900 beds and follows other recent transaction sizes of $87.15 million, $87 million and $18 million, all arranged by MonticelloAM.

“This transaction highlights MonticelloAM’s ability to creatively structure large-scale bridge financing for a leading sponsor, supporting the refinance of a significant Southeastern skilled nursing portfolio,” said Joseph Borenstein, head of the healthcare sales desk at MonticelloAM.

The most recent deal reflects Huntington National Bank’s continued commitment to supporting the skilled nursing sector and collaborating with clients to help them reach their goals, added Kevin Kornowa, managing director of corporate healthcare banking at Huntington.

Blueprint Facilitates Sale of VibraLife in El Paso

Blueprint helped facilitate the sale of VibraLife in El Paso, Texas, to Ignite Medical Resorts. The faciliy had been leased to a subsidiary of Vibra Healthcare, a Pennsylvania-based national specialty hospital and skilled nursing operator.

Ignite had recently added a similar facility in Houston through a Blueprint process on behalf of the same seller, Blueprint said in a statement.

The facility serves short-term rehabilitation patients, with 60 transitional care beds, along with 16 assisted living beds and 16 memory care beds. There are 34 private suite accommodations on campus, Blueprint said.

While assisted living and memory care occupancy was stable, transitional care census was stagnant due to shorter lengths of stay, a competitive market setting and limited dual certified beds; operational cash flow was constrained because of these factors.

Blueprint procured multiple competitive offers for the facility from investors and operators with a presence in Texas. A familiarity between Ignite and the buyer, along with the buyer assuming existing property-level debt, helped ensure an expeditious transaction; the deal closed 70 days after offer acceptance, Blueprint said.

ESI Aids in Sale of Minnesota Facility

Evans Senior Investments (ESI) successfully arranged the sale of a skilled nursing facility in Minnesota for an unnamed institutional seller.

The deal was part of the seller’s capital redeployment strategy, and generated significant interest before being sold to a regional owner-operator with an existing footprint in the state, ESI said in a statement.

CIBC Provides $15M to Maryland Portfolio

CIBC Bank USA provided a $15 million working capital revolving line of credit for a portfolio of skilled nursing facilities located in Maryland; Dan Forrer with CIBC handled the transaction.

The Maryland properties had positive historical performance in the last year. Occupancy and operating margins are expected to further improve given current improved census and operating leverage, Forrer said.

Blueprint Assists in Sale of Benedictine Living Community

Blueprint was chosen to conduct a targeted marketing campaign and sale process for Benedictine Living Community in Wausau, Wisconsin, to the Ensign Group (Nasdaq: ENSG) for an undisclosed sum. Ensign rebranded the property to Wood Aven Health and Rehabilitation.

Wood Aven offers 82 licensed skilled nursing and long-term care beds.

The marketing process yielded five competitive offers from for-profit investors, owner-operators, and real estate investment trusts (REITs), Blueprint said in a statement.

Blueprint Facilitates Sale of Alabama Nursing Home

Blueprint helped sell a 159-bed skilled nursing facility in Huntsville, Alabama; the seller, a real estate investment trust (REIT), and sale price were not disclosed. It was the only remaining asset the REIT’s tenant operated in the state.

The property is less than two miles from two prominent hospitals and recent physical upgrades enhanced the facility’s amenities and overall quality of care, Blueprint said in a statement. The property garnered seven offers.

While the facility once boasted a healthy net operating income with a strong margin, it struggled to recover post-Covid, Blueprint said. The broker highlighted the property’s strong past performance during the sale process, along with the stability and growth of the Huntsville area.