Northland Networks, which was acquired by First National of Nebraska in 2023, has closed a number of transactions so far this year, most recently arranging two acquisition loans for CCRCs in Arkansas. Both previously owned and operated by Evangelical Lutheran Good Samaritan Society, the assets were part of the not-for-profit’s exit from 15 states and consolidation of its services to the Midwest.
The CCRCs are located in Hot Springs Village and Mountain Home, Arkansas, and attract higher income seniors in their respective areas. Hot Springs Village was built between 1986 and 2006 and features a combination of 90 independent living units (including six two-unit buildings and a 78-unit building), 30 assisted living units and 50 skilled nursing beds. Also included in the deal was a 60,000-square-foot office building that the new owner converted to a medical outpatient building. The campus was well occupied, in the high-90s, and was profitable.
The Mountain Home location features 50 IL units (including six two-unit buildings and a 38-unit building), 57 AL units and 70 skilled nursing beds in a campus built from 1979 to 2017. It was also well occupied, in the mid-90s, and operated profitably.
Seth N. Kahn and Derek LaSota of Northland Networks arranged two three-year acquisition loans at 80% loan-to-value and interest rates in the low-8s. Earlier this year, Kahn and LaSota also arranged financing for the acquisition of another two Good Samaritan properties, including Scandia Village in Sister Bay, Wisconsin (to Continuum Healthcare) and a property in Arlington, Ohio. In addition, Northland helped fund the acquisition of a 59-bed skilled nursing facility in Monticello, Kentucky. And there is more to come in 2024.
