Working on behalf of a local owner/operator, CIBC Bank USA has closed a cash-out refinance of a portfolio of three skilled nursing facilities in Illinois. Totaling $11 million, the loan comes with a five-year term. Neal Netzel and Mathew Tyler handled the transaction for CIBC.
These facilities, which have an effective age of 30 years, total 260 beds. They have been historically well occupied around 85%, which is a solid figure for the sector in the last several years. Also, EBITDAR margins have been strong in the mid-teens. Most operators would happily take that. With those good operations, we imagine the owner was able to extract some equity from the portfolio.