The operating businesses for Mission Point Health Care properties were sold for pennies. Meanwhile, Blueprint represented a real estate investment trust (REIT) in a recent sale involving four nursing homes in Virginia, for an undisclosed amount.

Michigan nursing home operations sold for $10 plus liabilities

The operating businesses – not the real estate – for Mission Point Health Care were sold for $10 to an investment group tied to Villa, another nursing home chain. This investment group also assumes millions in liabilities, according to a report from MLive.

Mission Point Health Care, considered to be one of Michigan’s most troubled nursing home chains, collapsed under massive debt, unpaid taxes and serious federal penalties for abuse and neglect.

Eight Mission Point facilities were placed in court-ordered receivership after failing to pay nearly $5 million in rent and defaulting on $6.8 million in loans, MLive reported. Mission Point also owed $4.7 million in state taxes, and faced millions more in federal fines related to severe care failures. One of these facilities, Mission Point of Madison Heights, was shut down in July.

Of the remaining seven properties, Villa “appears” to have kept three, and the rest are now managed by Cerus Healthcare, MLive reported.

Blueprint represents REIT in Virginia sale

Blueprint brokered the sale of four skilled nursing and long-term facilities in Virginia for an undisclosed amount, representing a real estate investment trust (REIT) in the deal.

The REIT’s tenant chose to exit operations in non-core states, Blueprint said.

The 570-bed portfolio spans from the southwest part of the state to the east coast, with properties ranging in size from 60 to 300 beds. Some seniors housing units are also part of the largest location.

Three of the properties were originally constructed in the 1970s, with renovations and upgrades over the years, while the other was constructed in 2005. While the properties were well-positioned and had positive margins, the ever-changing Medicaid landscape in Virginia put downward pressure on results, Blueprint said.

The portfolio initially garnered 14 offers, with a New York-based owner and operator chosen for its “considerable presence” in the Commonwealth.

CFG closes $350.9M across 12 deals

CFG closed more than $350.9 million across 12 transactions from mid-September through the end of October.

The deals involved 25 skilled nursing facilities and one facility that had a mix of skilled nursing and assisted living. These facilities are located in Maryland, New York, South Carolina, Texas, New Jersey, Washington, Georgia, Tennessee and Missouri.

“Closing this level of volume in just over six weeks demonstrates the continued strength of our platform and the trust our health care clients place in CFG,” said CFG Bank President Erik Howard. “We’re proud to deliver the reliability and efficiency our clients rely on so they can focus on providing high-quality care.”

The transactions also reflect a range in lending capabilities, from construction to refinancing to acquisitions, noted Tim Eberhardt, chief lending officer, bridge and HUD Loans.

“Our team’s experience across asset types and deal structures allows us to meet clients where they are and help them move forward with confidence,” said Eberhardt.

The transactions included:

• $137 million bridge loan for the acquisition of an eight-property, 826-bed portfolio in Georgia

• $38.1 million HUD loan for refinancing a 156-bed Maryland facility
  
• $17 million bridge loan increase for a New York property with 123 skilled nursing beds and 60 assisted living units
  
• $17.7 million bridge loan increase for a 96-bed facility in New York
  
• $6.5 million construction loan for the development of a 100-bed facility in South Carolina
  
• $7.3 million HUD loan for the refinancing of a 136-bed facility in Houston, Texas
  
• $33 million bridge loan for the refinancing of a 240-bed property in New York

• $7.3 million HUD loan for the refinancing of an 88-bed facility in Texas
  
• $20 million HUD loan for the refinancing of a 126-bed property in New Jersey
  
• $35.6 million HUD loan to refinance a 162-bed facility in New Jersey
  
• $16.8 million bridge loan for the acquisition of a 125-bed property in Washington
  
• $14.3 million mezzanine loan to support the acquisition of eight other properties across Georgia, Tennessee and Missouri

ESI arranges sale of SNF in Alabama

Evans Senior Investments (ESI) arranged the sale of the 92-bed Eastview Rehabilitation & Healthcare Center in Birmingham, Alabama for an undisclosed amount.

A long-time regional owner and operator was looking to divest of this non-core asset, ESI said. Despite consistent performance and operational stability, ESI still identified some strategic cost-saving opportunities to provide meaningful upside to the buyer.

The buyer is expanding its footprint in the state, ESI said, and is aligned with the seller’s long-term strategic vision for the community.

VIUM Capital executes 4 portfolio financings

VIUM assisted in the financing of four portfolios across Florida, Michigan and Pennsylvania.

The first involved HUD loans totaling $66.08 million for the 357-bed, three-facility portfolio in Florida. Financing was executed through a HUD loan structure to refinance existing indebtedness, including a bridge loan and sponsor note associated with the acquisition.

The sponsor originally acquired the portfolio in September 2022 and has since significantly improved performance through stronger occupancy, resource utilization group (RUG) optimization, Medicaid rate increases and reductions in contract nursing and care-related expenses, VIUM said.

Another deal involved $32.6 million in structured bridge loans supporting the acquisition of a Michigan SNF and its subsequent earn-out.

The third VIUM transaction involved just over $45.5 million in HUD loans for four properties in Pennsylvania – three continuing care retirement communities (CCRC) and a skilled nursing facility, totaling 634 beds. Underwriting for this deal incorporated a Medicaid rate increase implemented during the loan evaluation period, VIUM said, which strengthened expected cash flow.

The last VIUM portfolio financing involves two assisted living properties in Florida and Michigan for $38.5 million.

Carnegie Capital brokers SNF refinance, acquisition

Carnegie Capital brokered two transactions recently, one being an $8.5 million HUD loan to refinance a 92-bed skilled nursing facility in the southwest with a HUD lender.

The second transaction involved a $2 million bank acquisition loan for a 75-bed skilled nursing facility in west Texas, with a Texas bank.

The borrower in both cases is a strong regional owner and operator, according to J.D. Stettin, managing partner for Carnegie Capital. The refinanced property was built in the 1970s, while the acquisition was built in the 1960s.

SLIB facilitates sale of Colorado SNF

Senior Living Investment Brokerage (SLIB) successfully facilitated the sale of a 60-bed rural and distressed skilled nursing facility in Lamar, Colorado for an undisclosed amount.

The seller was a private real estate investment trust (REIT) based in California, while the buyer was a Florida-based owner and operator; the acquisition marks the buyer’s first venture into the state.

Vice Viverito and Taylor Graham of SLIB handled the transaction.

Blueprint assists REIT in sale across three states

Blueprint advised a public real estate investment trust (REIT) in the sale of a skilled nursing portfolio spanning California, Florida and Virginia. The sale price and number of facilities were not disclosed.

The transactions were trifurcated by state, with the final closing in California for a trophy facility serving San Bernardino County, according to Blueprint. The property has a growing senior population and significant barriers to new development, meaning sustained demand for services. The facility was about 90% occupied and generating more than $25 million in total revenue at the time of marketing.

The San Bernardino facility was built in 1990 and maintains strong affiliations with Kaiser Permanente, meaning a strong referral network, and has the state’s only 50-bed specialty unit offering both dialysis and ventilator care.

The buyer is a Los Angeles-based investor and the largest private owner of skilled nursing facilities in California – Blueprint’s marketing campaign for the portfolio focused exclusively on the most active West Coast and California-based operators.