CIBC Bank announced it has provided a California lessor with a $17.5 million loan to refinance an assisted living and skilled nursing portfolio. Located in Southern California, the communities consist of 180 assisted living units and 100 skilled nursing beds, and are run by a local operator. With an effective age of 25 years, the properties had historical occupancy around 70%, and the EBITDAR margin was approximately 13%. Matthew Tyler and Neal Netzel handled the financing on behalf of CIBC.
CIBC Bank also announced it has provided $39 million ($29 million at closing with a $10 million earn-out) in acquisition financing for a 116-unit assisted living/behavioral health facility in Arizona. They improved occupancy over the past year with an increase in residents with behavioral needs, and the property anticipates occupancy in the mid-90% range with strong operating margins. The property manager will remain in place, and continue to run the day-to-day operations for the community.
Fritz Kieckhefer and Kyle Doran handled the transaction for CIBC. This is the bank’s second transaction with the sponsor.
