Capital Funding Group announced its involvement in an acquisition financing supporting the purchase of a skilled nursing facility in Pekin, Illinois that closed earlier in April (that we covered in last month’s issue of The SeniorCare Investor. Built in 1964, the facility was previously owned by a California-based individual who had inherited the day-to-day operations from her late husband.
Managing the facility from California proved to be too much for the seller, who decided to retire. Occupancy was 62% at the time, but with a strong 57% quality mix, 52% of the census coming from private pay. However, it was generating a loss of about $200,000 on $5.24 million of revenues.
Half of the facility’s beds were certified for Medicaid, but during the transition, the license capacity of Medicaid beds was increased to help the buyer, an owner/operator with several other facilities in Illinois, improve occupancy moving forward. Ryan Saul of Senior Living Investment Brokerage handled the transaction.
The facility was added to an existing seven-facility portfolio in Illinois, with Capital Funding Group providing an additional $1.7 million for the acquisition, increasing the portfolio’s senior secured term loan debt to $16.8 million. Craig Casagrande and Andrew Jones originated the transaction.