Contemporary Healthcare Capital (CHC) completed two mezzanine loans to help buyers fund the purchase of skilled nursing facilities. The Portopiccolo Group, based in New Jersey, bought a 165-bed facility in Covington, Tennessee and borrowed a combined $8.755 million. CoastalStates Bank of Hilton Head provided the senior loan and CHC provided a $2.25 million mezzanine loan. In addition to funding the acquisition, proceeds were also used for about $600,000 in capital improvements.
In a larger deal, Citadel Care Centers bought a 246-bed skilled nursing facility in the Miami area of South Beach, Florida. New York City-based Valley National Bank provided the senior debt of the total $33.9 million of financing, and CHC provided a $3.76 million mezzanine loan. The funds were used for the acquisition and $2.3 million will be used for capital improvements.