We know that closing M&A transactions and financings has gotten much more difficult in the last couple of months, but Meridian Capital Group’s Senior Housing and Healthcare team announced $913 million in transaction volume over the past two months, bringing their year-to-date total to nearly $4 billion in 2022. Ari Adlerstein and Josh Simpson negotiated the deals.
The highlight had to be a $319.2 million acquisition loan along with $31 million in A/R financing from a commercial bank, finance company, and mezzanine lender for 18 skilled nursing facilities comprised of 2,185 beds in Florida. But the team also closed a $120.4 million loan from a commercial bank along with a $7 million A/R line to purchase two properties and refinance a third in New Jersey totaling 434 skilled nursing, 52 assisted living and 18 memory care beds. And Meridian Vice President Sim Goldberg negotiated $111.4 million in senior and mezzanine financing for eight assisted living communities in Pennsylvania and Ohio consisting of 580 units.
The acquisition loans kept coming, as Meridian next arranged $47.7 million in financing from a finance company for seven skilled nursing facilities consisting of 558 beds in Colorado, and $21.8 million in acquisition financing from a commercial bank for a 138-bed skilled nursing facility in California. There were two deals in New York as well: $23.6 million in financing from a commercial bank for a 200-bed skilled nursing facility and $19.8 million in acquisition financing along with a $1 million A/R line from a commercial bank for a 120-bed skilled nursing facility.
The team also closed a $10.2 million acquisition loan along with a $1.25 million A/R line for a 139-bed skilled nursing facility in Massachusetts, a $7.7 million acquisition loan along with a $1 million A/R line for a 98-bed skilled nursing facility in Illinois, and a $7.1 million acquisition loan along with a $1.5 million A/R line for a 150-bed skilled nursing facility in Missouri. All three loans were provided by commercial banks. The activity shows that buyer interest in SNFs, at least in the last two months, remained strong, especially relative to the seniors housing market.
Refinancing activity will inevitably fall in the next year, but not all buyers secured a sub-2.5% HUD loan in the last couple of years and need a permanent mortgage now. Meridian arranged several HUD loans closed in conjunction with Greystone: a $71.1 million loan for a Pennsylvania facility comprised of 324 skilled nursing beds, 49 assisted living units, and two independent living units; a $45.9 million loan for a 258-bed skilled nursing facility in New York; and a $20.2 million loan for a facility in Wisconsin.
Rounding out their recent closings, the team arranged a $40 million loan from a commercial bank to refinance two skilled nursing facilities totaling 228 beds in Pennsylvania, and $4.2 million in construction financing from a PACE lender for a property in Florida comprising 99 assisted living and 32 memory care units.