DAC Acquires 340-Bed SNF Portfolio; Fairport Baptist Homes Files For Bankruptcy

Blueprint announced the sale of three skilled nursing and long-term care facilities in Mississippi totaling 340 licensed beds to DAC Acquisitions, LLC.

The portfolio’s owner, a New York-based investment firm, put the facilities up for sale after the operator filed for bankruptcy. Overall census declined throughout the pandemic but leveled out in late 2021 at around 70%.

Still, the facilities continued to generate positive EBITDAR through the pandemic. With Medicaid rates temporarily frozen, the facilities are expected to see improved reimbursement revenue once 80% occupancy is reached, according to a news release announcing the deal.

After receiving multiple offers from in-state owner-operators, regional providers and industry investors within three weeks, DAC Acquisitions, LLC was selected for its pricing and existing presence in the state as the regional provider grew its footprint in the state following its recent acquisition of Diversicare.

Fairport Baptist Homes Files for Chapter 11

A New York nursing home filed for Chapter 11 bankruptcy protection this month as it cited unprecedented financial challenges related to the pandemic, which included occupancy declines, staffing pressures and operational costs.

The petition was filed in the US Bankruptcy Court in Western NY, WXXI, a local news station, reports.

The nursing home’s assets will reportedly be sold to Brighton-based The Friendly Home.

Fairport Baptist Homes reports that it lost nearly $8 million in revenue in 2020 and 2021 due to census declines. Its Ch. 11 petition notes that by the late 2010s operating as a freestanding nursing home was not economically viable due to reimbursement rates.

In a statement issued Monday, Fairport said its plan is to stabilize its finances by filing for Ch. 11 and become an affiliate of Friendly Senior Living moving forward as it hopes to remain a “strong and viable organization,” WXXI reports.

$15.2M HUD Loan For Continuing Healthcare of Niles

Cambridge Realty Capital Companies closed on a $15.3 million HUD-insured loan for Continuing Healthcare of Niles, a 136-bed skilled care facility located in Niles, Ohio.

The loan was underwritten by Cambridge Realty Capital Ltd. of Illinois.

As one of the nation’s leading specialized senior housing and healthcare debt and equity capital providers, Cambridge has closed more than 500 senior housing transactions totaling more than $6.5 billion.

SLIB Sells Senior Care Facility

Senior Living Investment Brokerage announced the sale of Cedar Village, a senior care community in Mason, Ohio that offers independent living, assisted living and SNF care consisting of 105 assisted living units and 162 SNF beds.

The seller was a nonprofit based in Indiana that decided to divest from the community to focus on other core assets.

SLIB received multiple offers for the community and the buyer ended up being a regional company with other communities in Ohio and within close proximity to Cedar Village.

“This transaction offered a great opportunity for a company looking for growth to acquire the flagship operation in that market,” said Ryan Saul, SLIB’s Managing Director, in the news release. “With the shift of the industry becoming a more local, regional business, Cedar Village should do well under new ownership.”

Ziegler Closes $68 Million Financing

Specialty investment bank Ziegler announced it closed on about $44 million of Series 2022A fixed rate revenue bonds and $24 million of Series 2022B fixed rate mandatory paydown securities for Cypress Cove at Healthpark Florida, Inc.

Cypress Cove owns and operates a life plan community located in Fort Myers, Fla. The community consists of 529 units, including 377 independent living units, 44 assisted living units, 44 memory support units and 64 SNF units on a 48-acre campus.

The bonds will be used to fund a debt service reserve fund and capitalized interest through January 1, 2024 and to fund an assisted living expansion project.

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