Low Census SNFs Trade Hands in Illinois
CIBC Bank USA closed on a $12.44 million acquisition loan for two skilled nursing facilities totaling 253 beds in northern and central Illinois. An absentee manager had operated the facilities for several years, and occupancy was low as a result. Both facilities had an effective age of roughly 20 years, which is not too old in the SNF market. So, the borrower/buyer saw an opportunity to reduce expenses and bring occupancy to a stabilized level, thereby generating a margin in the mid-teens. One facility will be owner-operated, and the second will be leased to a regional operator. CIBC’s financing included a three-year term loan arranged at 80% loan-to-value, with earn-out... Read More »
CIBC Arranges Financings for Several SNF Purchases
One side to the surge in M&A activity in the last couple of weeks is the financing side of it, and CIBC Bank USA announced a couple of acquisition loans for skilled nursing purchases. CIBC’s Adam Panos first closed a $91 million loan with a three-year term for Summit Healthcare REIT’s acquisition of eight skilled nursing facilities totaling 826 beds. The purchase price came to $130 million, or $157,000 per bed, and brings the private REIT’s total 2021 investment in skilled nursing M&A to $150 million. Summit is leasing the facilities back to a local operator on a triple-net basis. CIBC served as the sole senior lender, and Oxford Finance also worked on financing the deal. Next,... Read More »
Diversicare Healthcare Services Acquired by DAC Acquisition LLC
Several months after the deal was first announced, Diversicare Healthcare Services has now been acquired (through a merger) by DAC Acquisition LLC, a privately held Delaware limited liability company managed by Ephram Lahasky. Mr. Lahasky has significant affiliations with in excess of 100 owned and/or leased skilled nursing and similar facilities in over 20 states. Per the deal, Diversicare’s stockholders will receive an amount of cash equal to $10.10 per share of Diversicare common stock, which represents a premium of approximately 256% from Diversicare’s closing share price of $2.84 on August 19, the last trading day prior to... Read More »
CIBC Bank Closes Two Acquisition Loans
CIBC Bank USA closed on a couple of acquisition loans. First was a $5 million loan for a 70-bed skilled nursing facility in central Illinois. With an effective age of 25 years, the facility has been run by a regional operator for several years. The undisclosed buyer saw an opportunity to cut expenses and improve occupancy, with stabilized occupancy of 87% and margins in the mid-teens. Bank financing included a five-year term loan, with earn-out potential, plus a $750,000 working capital line of credit. Fritz Kieckhefer and Kyle Doran handled the financing for CIBC. The same CIBC duo next provided $10 million in acquisition financing for a 42-unit behavioral residential care... Read More »Schedule a demo
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