MonticelloAM and its affiliates just announced a large first lien debt financing to fund the acquisition of five skilled nursing facilities in Virginia. The borrower, an experienced owner/operator with an established relationship with Monticello (having received acquisition financing for several other facilities in 2019), obtained $97.2 million in debt, including an $8 million working capital loan provided to its operating companies. Monticello’s asset-based lending group, Monticello Commercial Capital, provided the working capital.
The acquisition featured 856 beds located primarily around Richmond, bringing the owner’s portfolio to a total of 1,155 licensed beds. The facilities average nearly 40 years in age, and totaled around 290,000 square feet. The debt amount came to $113,500 per bed, which should put the purchase price well above that. That compares with the average price in Virginia over the past five years of $110,200 per bed, according to the 25th Edition of The Senior Care Acquisition Report. Investors must like the state.