New Jersey-based The Portopiccolo Group has expanded its skilled nursing holdings in the Southeast and entered the North Carolina market with its latest acquisition. The target is located in the western part of the state in Hendersonville and features 134 licensed beds, at 72% occupancy. In the end, it sold for $8.075 million, or about $60,000 per bed, at approximately 1.17x its 2018 revenue.
To fund the acquisition, Coastal States Bank provided a $6.25 million senior mortgage loan and Contemporary Healthcare Fund III, LP provided a $1.358 million mezzanine loan, both structured as a unitranche loan. That included about $600,000 for future renovations.
This acquisition is the fifth for Portopiccolo in the last 18 months, which previously acquired facilities in Covington, Tennessee, Louisville and Jeffersontown, Kentucky, and Roanoke, Virginia. Contemporary Healthcare Capital helped fund a couple of the deals with mezzanine financing as well.