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CareTrust REIT Expands Illinois Footprint; Ziegler Closes $23.5M in Financing


CareTrust REIT (NASDAQ: CTRE) is growing in Illinois after acquiring the Imboden Creek Living Center, Gardens and Villas campus in Decatur, Ill. this month. CareTrust’s initial investment in the facility, inclusive of capital expenditure commitments and transaction costs, was roughly $13.1 million.

The campus includes 95 licensed skilled nursing beds, 46 assisted living units and five independent units.

The deal will be a “tack-on” to CareTrust’s existing eight-property master lease with Harrisburg, Ill.-based operator WLC Management, replacing the outgoing operator.

“Scott Stout and the WLC team have consistently surpassed expectations and the relationship we have forged with them over the past 5 years continues to be one of our most meaningful and rewarding,” Dave Sedgwick, CareTrust REIT’s president and CEO , said in a statement announcing the deal.

The acquisition was funded using the REIT’s $600 million unsecured revolving credit facility.

Ziegler Closes $23,550,000 Financing For The Redwoods

Speciality investment bank Ziegler announced it closed Series 2022 Bonds for The Redwoods, a not-for-profit corporation that operates a multi-level retirement community consisting of 148 unlicensed independent living units, 130 licensed assisted living units and a 58-licensed bed SNF located in the city of Mill Valley, California. 

The Redwoods will use the bond proceeds, together with an equity contribution of $5 million, to refinance outstanding Series 2013 Bonds, fund a bond reserve account for the benefit of the bonds, pay an insurance premium to the Cal-Mortgage Loan Insurance Program, as well as pay certain costs of issuance, according to a news release. 

The bonds amortize over a 15-year period, which is eight years shorter than the maturity on the existing 2013 Bonds, and carry a bond yield of 2.937%, the news release said. The bonds were issued with a 10-year par call.

“This unique taxable refinancing positions The Redwoods well for the future,” Daren Bell, a Director at Ziegler, said in the news release. “The Redwoods has found success serving moderate to low-income seniors in Marin County, and it was a pleasure working with them to bring this refinancing to a successful close for the benefit of their residents.

Assisted Living Facility to be Converted to SNF

Senior Living Investment Brokerage announced the sale of an assisted living facility in Tulsa, Okla.

The buyer, an experienced Oklahoma-based private owner, is looking to expand their portfolio and plan to convert the facility to skilled nursing with a hospice specialty.

“The facility is well positioned for success moving forward as the new owner transitions it to skilled nursing,” Nick Cacciabando, senior vice president of SLIB, said in the news release.

The facility consists of 20 units, 25 beds and was built in 1997 with approximately 15,688 square feet.

SLIB’s Jason Punzel and Cacciabando handled the transaction.

VIUM Capital Lands $9.5M HUD Loan

VIUM Capital announced it closed on a $9.5 million Department of Housing and Urban Development loan to refinance a skilled nursing facility in Indiana.

VIUM originally closed a bridge loan for the acquisition of five SNFs in 2020.

The building was refinanced into HUD with this transaction, providing non-recourse, low-interest, long-term debt, according to VIUM. The other four buildings are set to follow.

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