The Portopiccolo Group just made its third skilled nursing acquisition of the year, making it one of the most prolific buyers in that space in 2019. Its most recent target was a 150-bed skilled nursing facility in Virginia Beach, Virginia. To fund the acquisition, Portopiccolo turned to Contemporary Healthcare Capital to closed $1.97 million in mezzanine financing in addition to receiving a senior loan from United Community Bank. About $2.7 million in capital upgrades will also be funded.
The transaction is similar to Portopiccolo’s acquisition earlier this year of a 130-bed skilled nursing facility in Roanoke, Virginia that included a 24-bed accredited ventilator unit. That always adds to a facility’s appeal.
CHC closed a $2.0 million mezzanine loan, while United Community Bank provided the senior loan (with a participation sold to Millennium Bank. Proceeds of the loan will fund both the property’s acquisition and about $1 million in future renovations and upgrades.