It has been a busy last couple of weeks at CIBC. After closing two cash-out refinances for five skilled nursing facilities, totaling over $43 million in loans, the bank arranged acquisition financing for another three skilled nursing facilities. Daniela Miranda and Matthew Tyler secured the $7.5 million loan for the buyer to complete a purchase option on the portfolio. Located in Illinois, the three facilities total 280 beds and had an effective age of 25 years. They had been run by a local operator, and occupancy was historically in the 60s. The operating margin was around 10%.
CIBC arranged a five-year loan on the real estate and also closed a $2.0 million revolving line of credit to support working capital. The purchase price was agreed upon years before and came to $7.5 million, or nearly $26,800 per bed.
