Northland Networks, a member of the First National of Nebraska family, ended 2024 on a high note, closing two acquisition financings for skilled nursing clients in the last several months. One was for a 59-bed skilled nursing facility in rural southern Kentucky that was built in the late-1970s by the same family that is now selling it. The facility could improve its operations, and that will be the task of a Northeast-based real estate investment firm to turn around with an operating partner.
Seth Kahn of Northland arranged an acquisition loan with a bank, structuring it with a five-year term, one year of interest only, an attractive interest rate and at 80% loan-to-value.
Additionally, Kahn closed an acquisition loan for a 120-bed skilled nursing facility in northwest Illinois (Quad Cities metro area). Set adjacent to the MercyOne Genesis Silvis Medical Center campus, the facility was built in the late-1960s and featured 102 licensed skilled nursing beds and 18 sheltered care beds across 30 private rooms and 45 semi-private rooms. With a consistent uptrend in census, the facility generated more than $8.0 million in revenue (according to a December release on the deal from Blueprint) with an approximate 50% quality payor mix. It was previously owned by Wellspire, a joint venture between WesleyLife, Iowa’s largest not-for-profit senior care provider, and Genesis Health System (now MercyOne Genesis). Michael Segal, Ben Firestone and Daniel Waldhorn of Blueprint represented the seller in the transaction.
On behalf of the Illinois-based private investor/buyer, which has a large ownership presence in the state, Northland secured an acquisition loan at 80% loan-to-value with a five-year term and one year of interest only. According to the December release, the facility sold for $5.5 million, or about $46,000 per licensed bed. That wrapped up Northland’s 2024 activity, which saw the firm close seven taxable healthcare loans, three tax-exempt bonds and other commercial real estate deals.
