M&A and financing activity may be declining in the face of rising capital costs, but Meridian Capital Group’s Senior Housing and Healthcare Team closed more than $1 billion in transaction volume in November for a combination of 47 facilities in nine states. The transactions were negotiated by Meridian’s Senior Housing and Healthcare Platform, led by Ari Adlerstein and Josh Simpson.
One of the team’s largest closings was the sale of 12 assets in Pennsylvania and Virginia totaling 1,302 skilled nursing and 44 assisted living beds, for which they also arranged acquisition financing on behalf of the various buyers. Additionally, the team arranged the $102.5 million sale of seven skilled nursing facilities comprised of 907 beds in Pennsylvania and three acquisition loans in conjunction with the sale: a $61.8 million loan from a finance company for five of the facilities, a $14.2 million loan from a commercial bank for one asset, which was negotiated by Avi Begun, and a $10.5 million loan from a commercial bank in addition to a $2 million A/R line for the final facility.
There were a few other acquisition loans closed during the month. First was a $27.8 million loan from a commercial bank and a $4 million A/R line for the acquisition of two skilled nursing facilities comprising 249 beds in Massachusetts. Next, Meridian closed a $21.2 million loan from a commercial bank along with a $3 million A/R line for the acquisition of three skilled nursing facilities consisting of 380 beds in Connecticut. They also arranged $9 million in mezzanine financing for two skilled nursing facilities with 240 beds in Florida and $4.8 million from a commercial bank for the acquisition of a 128-bed skilled nursing facility in Massachusetts. The team even arranged a $25 million loan from a commercial bank for the acquisition of 12 behavioral health facilities in Massachusetts, New Jersey, North Carolina, Tennessee, and Florida.
Meridian’s Avi Begun arranged $9.8 million in financing from a commercial bank for the acquisition of two assisted living assets totaling 131 beds in Florida, while Sim Goldberg arranged $10.9 million in acquisition financing in addition to a $1.25 million A/R line for a 134-bed skilled nursing facility in North Carolina. The team also negotiated the $12.5 million, or $93,300 per bed, sale of the asset.
The refinancing market has been quiet, but Meridian rounded out its activity with a $33.3 million loan from a commercial bank in addition to a $2.5 million A/R line to refinance three skilled nursing facilities totaling 379 beds in Georgia.