New York City-based real estate private equity firm and debt fund manager Northwind Group’s Healthcare Debt Fund II led the origination of two mezzanine loans totaling $105 million, collectively secured by two portfolios of 25 skilled nursing facilities and assisted living communities in Virginia and Missouri, the company announced Monday. The settings have a combined total of 2,920 skilled nursing beds and 186 assisted living units.
San Clemente, CA-based real estate investment trust CareTrust REIT participated in the transaction by providing $44.8 million to the mezzanine loans, $35 million for the Virginia financing and $9.8 million for the Missouri financing.
The first loan announced by Northwind is for $85 million and is secured by 15 properties totaling 1,675 skilled nursing beds and 34 assisted living units across several densely populated seniors’ markets in Virginia, according to the company. The second loan is for $20 million and is secured by 10 properties totaling 1,245 skilled nursing beds and 152 assisted living units across the metro areas of Kansas City and St Louis.
“This investment represents our core focus of providing structured financial solutions for leading skilled nursing owners and operators in select US states. It was great coordinating the execution of this loan together with Care Trust REIT, and we look forward to collaborating with them on future transactions,” Jonathan Slusher, head of senior living and healthcare of Northwind Group, said Monday in a press release.
“It was great coordinating the execution of these two loans with a co-lender as experienced and sophisticated as the Northwind Group,” added CareTrust Chief Investment Officer James Callister.
Separate $7.4 million transaction
In a separate transaction announced by CareTrust, the REIT closed on a mezzanine loan of approximately $7.4 million to a regional investor in connection with the acquisition of a 130-bed SNF in Pasadena, CA. The loan has a five-year term and will accrue interest at a fixed rate of 11.5%. The facility will be operated by an existing tenant of CareTrust, according to the REIT.
“These financings reflect our relationship-based lending approach focused on establishing or expanding relationships with borrowers and operators that we anticipate will facilitate future real estate-based acquisition opportunities,” Callister said.