Ziegler served as capital structuring advisor in the $48.95 million debt placement to support the acquisition of two skilled nursing facilities and one supportive living facility in the Lincoln Park and South Shore neighborhoods of Chicago, Illinois. Symphony Care Network is the buyer, after having already operated the communities for some time on behalf of the landlord, Invesque. There are 475 licensed skilled nursing beds and 118 supportive living beds.
The deal is part of Invesque’s plan to streamline its relationship with Symphony. These three facilities sold for approximately $55.5 million, or $93,600 per bed, providing about $10.5 million of net cash proceeds to Invesque. Ziegler closed the financing 52 days from initial engagement. Symphony is also obligated to acquire the 234-bed Symphony of Chicago West on or before May 1, 2024, subject to a minimum price of $30.5 million, or $130,300 per bed. Plus, Symphony funded a non-refundable cash deposit into escrow as part of its obligation to purchase Chicago West.
For the eight remaining properties in the master lease between Invesque and Symphony, both parties agreed to enter into an amended and restated 15-year master lease, which features rent of approximately $14.3 million beginning on January 1, 2022 and annual base rent escalators of 2% beginning on January 1, 2023.
These moves represent the end of the portfolio restructuring effort that was announced in the fourth quarter of 2020, when Symphony operated 16 facilities for Invesque under an absolute net lease structure. Already, Invesque has sold a 125-bed skilled nursing facility in Chesterton, Indiana, and transitioned four skilled nursing facilities in Illinois to Cascade Capital Group for an initial 10-year lease with two five-year renewal options.
