By Kristin Carroll

This roundup of skilled nursing deals includes a mix of action from REITs, the recapitalization of a 13-property portfolio, and a pre-seed funding round for an AI platform. Read on to learn more.

Capital Funding Group Closes $50.3M Delayed Draw Bridge-HUD Loan

Healthcare and multifamily lender Capital Funding Group (CFG) announced the closing of a $50.3 million delayed draw bridge-to-HUD loan to support the recapitalization of 13 skilled nursing facilities in California, New Hampshire and Massachusetts.

The funding provided for an immediate recapitalization of one facility in California and for additional delayed draw proceeds to further capitalize the other 12 assets, which are part of an existing HUD portfolio. CFG intends to refinance into permanent long-term HUD debt.

“By executing a bespoke financing structure that mitigates HUD take-out risk while providing both short- and long-term recapitalization, this solution not only supports our client’s financial goals but also ensures stability for the communities their facilities serve. We look forward to refinancing this loan into a permanent HUD-insured loan,” said CFG Director Healthcare Finance Andrew Jones, who originated the transaction.

Strawberry Fields Acquires Missouri Facility in $5.3M Deal

Strawberry Fields REIT, Inc. (NYSE AMERICAN: STRW), a self-administered real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing and certain other healthcare-related properties, announced it completed the acquisition of a facility comprised of 108 skilled nursing beds and 16 assisted living beds for $5.3 million located in Poplar Bluff, Missouri.

The facility was added to an existing master lease with an affiliate of Reliant Care Group L.L.C.

This acquisition marks the 18th facility for the company in Missouri. Strawberry Fields’ portfolio includes 142 health care facilities with 15,500+ beds, located in Arkansas, Illinois, Indiana, Kansas, Kentucky, Missouri, Ohio, Oklahoma, Tennessee and Texas. Skilled nursing facilities make up 130 of the 142 facilities.

Flax Health Raises $3.5M in Pre-Seed Funding Round

Flax Health, an AI-powered platform for skilled nursing facilities, has raised $3.5 million in pre-seed funding. The round was co-led by Sorenson Capital and Pear VC, with participation from health care executives and skilled nursing operators.

“Skilled Nursing Facilities play a critical role in caring for patients after hospital discharge or surgery, yet have historically been underserved when it comes to modern technology,” said Mar Hershenson, Founding Managing Partner at Pear VC. “Equipping these facilities with AI can meaningfully improve patient outcomes while strengthening operational sustainability – both essential to the health of our system. We’re excited for Flax to bring cutting-edge generative AI to the workflows of these vital care providers.”

Flax Health automates critical administrative workflows like referral processing, patient intake, and claims in post-acute care. The company’s first product assesses hospital referrals for admissions and is already in use in multiple states. The technology examines referral packets, instantly summarizes patient cases, and flags potential risks, such as costly medications, insurance, or behavioral factors.

“Flax Health is tackling real operational pain points with a solution that’s easy to adopt and delivers immediate impact,” said Eric Hilton, Partner at Sorenson Capital. “The team’s mix of health care domain knowledge and AI expertise, paired with strong early traction, makes them well-positioned to lead in this space. We’re excited to support their next phase of growth.”

Invesque Sells Two SNFs, Pays Off Loan

Health care real estate company Invesque Inc. (TSX: IVQ and IVQ.U) announced the sale of its two remaining skilled nursing facilities in Illinois, which were previously leased via a long-term, triple-net lease that included a tenant purchase option.

The amount of the sale was not disclosed, but proceeds from the transaction allowed the company to fully repay a credit facility from KeyBank, leaving two facilities in the Invesque portfolio free of liens or loans. Following the completion of the transaction, the company’s real estate portfolio includes 19 assets in eight states and one Canadian province.

“Closing on the sale of our remaining skilled nursing facilities and fully paying off the KeyBank credit facility represents significant progress for Invesque,” said Quinn Haselhorst, Invesque Chief Financial Officer. “This transaction and corresponding payoff continues our de-levering strategy and provides us a great deal of flexibility going forward.

Omega Invests in MedaSync

Real estate investment trust Omega Healthcare Investors (NYSE: OHI) has entered into a strategic investment for MedaSync, a provider of artificial intelligence-powered reimbursement optimization software. Both companies target the skilled nursing space.

The amount of the investment was not disclosed, but funds will help MedaSync accelerate the adoption of advanced, intelligent tools designed to reduce administrative burden across the skilled nursing sector. MedaSync is experiencing significant business growth, with customer acquisition increasing more than 100% year-over-year.

“This funding is a powerful endorsement of our vision and achievements in the healthcare industry,” said Ryan Edgerly, CEO of MedaSync. “We are excited to partner with Omega to accelerate our growth and continue to provide skilled nursing organizations an innovative solution to thrive in today’s challenging reimbursement landscape.”

Megan Krull, Senior Vice President of Operations at Omega, will join the MedaSync board of directors.

“We see tremendous value in MedaSync’s technology,” Krull said. “Their innovative software is helping our operators to proactively address reimbursement inefficiencies. We’re excited to help accelerate MedaSync’s market penetration and scale the development of new innovative SaaS products.”