Capital Funding Group recently completed two bridge-to-HUD loans for the acquisition of three skilled nursing facilities. The first, an $18.29 million loan arranged by Craig Casagrande, financed the acquisition of two SNFs in Pennsylvania, totaling 256 beds. If this sounds familiar, you would be right, as the transaction, between buyer, Vita Healthcare Group and seller, a regional senior living operator, was featured in the June issue of The SeniorCare Investor. The two facilities, a 173-bed SNF (90% occupied) built in 1978 and a facility with 45 skilled nursing beds (75% occupied) and 38 personal care beds (85% occupied) built in 1968, with the skilled nursing beds added in 1996, were the last Pennsylvania assets for the seller. Both facilities had a 25% quality mix, so there is significant upside for the buyer, as the facilities operated below average. Capital Funding Group also issued a working capital line of credit to finance day-to-day operations.
The second transaction was a $13.90 million loan, arranged by Erik Howard, to fund the acquisition of a 243-bed skilled nursing facility in Redlands, California. The facility, which offers rehab, memory care, assisted living, independent retirement, post-acute rehab, skilled nursing, long-term care and hospice care, is 85% occupied and also has a 32-bed sub-acute area for patients in need of complex care or rehab.
