The Portopiccolo Group secured a refinance on 15 of its skilled nursing facilities from a diverse group of lenders, including CIBC Bank USA, which, along with other co-lenders, provided a $220 million senior secured credit facility. Located in Virginia, the facilities total 1,675 skilled nursing beds and 34 assisted living units. They have been operated by a third-party tenant for several years and boasted strong historical operations. Occupancy has been approximately 85%, with an EBITDAR margin around 25%. That is strong.
In addition to the senior debt, CIBC provided a $13.0 million revolving line of credit to support the ongoing operations of the third-party tenant. The financing was handled on behalf of CIBC by Matthew Tyler and Neal Netzel.
Other lenders provided Portopiccolo with debt, including Northwind Group, a real estate private equity firm and debt fund manager. For the same portfolio of 15 facilities, Northwind’s Healthcare Debt Fund II originated an $85 million mezzanine loan. For another 10 properties totaling 1,245 skilled nursing beds and 152 assisted living units across the Kansas City and St. Louis, Missouri markets, the Fund led the origination of a $20 million mezzanine loan. CareTrust REIT participated with $44.8 million in the mezzanine loans. Jonathan Slusher and Joe Weidt handled the transaction for Northwind.
