Eagle Arc Partners, formerly known as BM Eagle Holdings, has made yet another large investment in the skilled nursing industry, acquiring 20 skilled nursing facilities, with 18 in Florida and one each in Mississippi and Georgia. All will be leased to local operators going forward.
To fund the deal, Eagle Arc, which is run by Elliott Mandelbaum, worked with Capital Funding Group (CFG) to close a $317.5 million bridge-to-HUD financing package. CFG provided the financing through its new credit venture, CFG Credit Partners, LLC, an off-balance sheet credit venture managed by CFG Asset Management.
The new venture expands the company’s bridge-to-HUD lending capacity, a welcome sign for an industry relatively starved of this type of debt compared with a year ago. Erik Howard, Craig Casagrande and Tim Eberhardt originated the transaction, which also included a $14 million reserve for future capital improvements at the facilities.
To date, CFG has closed $1.1 billion in healthcare real estate bridge loans, and over $350 million in HUD mortgages. We hope the action continues.
For Eagle Arc Partners, this deal follows its 2019 acquisition of 28 skilled nursing facilities operated by Senior Care Centers in Texas and Louisiana (in a joint venture with BlueMountain Capital Management and Capital Funding Group) for $282.5 million and a three-community seniors housing portfolio acquisition around San Antonio, Texas for an undisclosed amount.
Sabra Health Care REIT was the seller for both portfolios. BM Eagle Holdings’ largest skilled nursing deal to date, however, was its acquisition of the entire Kindred Healthcare SNF portfolio in 2017 for $700 million. It’s safe to say that adds up to more than $1 billion in investments in the last few years at a time when large scale divestments had been all the rage.