CIBC Bank USA arranged yet another acquisition loan for a Mid-Atlantic skilled nursing facility. With an effective age of 35 years, this Baltimore, Maryland facility features 130 beds. Historically, occupancy was in the 80% range, and EBITDAR margins approximated 22%. That’s more than strong for a SNF. The existing operator, who had been leasing the facility since 2015 and clearly doing a good job, is now buying the SNF.
That’s where CIBC comes in, with Tim Wurpts arranging a $20 million acquisition loan on the real estate, which comes out to nearly $155,000 per bed. So, the purchase price is almost certainly higher than that, which makes sense given the level of cash flow the facility was generating. In addition to the two-year loan, CIBC also extended the terms on an existing revolving line of credit for the buyer to support working capital investments.
