A large Midwest-based operator purchased a portfolio of 12 skilled nursing facilities and 970 beds in Pennsylvania (11) and Delaware from its landlord, a private equity firm that has been divesting. The buyer assumed HUD debt, and CIBC Bank USA financed a $73 million acquisition loan to help cover the $140.5 million, or $144,800 per bed, purchase price.
Operating performance across the portfolio has been trending favorably, and the buyer will continue to utilize its economies of scale and knowledge of the market to boost census and enhance cash flow. It helps that they had been operating the buildings for at least four years prior to this acquisition, so they can hit the ground running as real estate owners. Michael Velazquez and Peter Kane handled the closing for CIBC.
