Ziegler Closes $67.27 Million and $82.9 Million in Financing for Two Properties with Nursing Home Beds; Strawberry Fields Purchases 83-Bed Property for $6.7 Million

Ziegler closed financings of $67.27 million and $82.9 million for two properties, each with skilled nursing assets, while Strawberry Fields acquired Mabry Health for $6.7 million.

Strawberry Fields Acquires Mabry Health Care

Strawberry Fields REIT (NYSE:STRW) announced the completion of its $6.7 million acquisition of a healthcare facility in Gainesboro, Tennessee.

The property at Mabry Health Care and Rehabilitation Center includes an 83-bed Skilled Nursing Facility and a 28-room Assisted Living Facility. This acquisition is included in the existing Infinity of Tennessee master lease and is expected to increase the company’s annual rents by $670,000 for a 3% annual increase, Strawberry Fields REIT said in a press release.

This marks Strawberry Fields REIT’s 15th property in Tennessee, further expanding its presence in the state’s healthcare real estate market.

Strawberry Fields REIT, Inc. is a self-managed real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing and certain other healthcare-related properties. The company’s portfolio includes 113 healthcare facilities totaling more than 12,800 beds located in the states of Arkansas, Illinois, Indiana, Kentucky, Michigan, Ohio, Oklahoma, Tennessee and Texas. It consists of 113 healthcare facilities, 103 skilled nursing facilities, eight assisted living facilities and two long-term acute care hospitals.

ESI Brokers Sale of Mabry Health and Rehabilitation Center to Strawberry Fields

Evans Senior Investments (ESI) arranged the sale of Mabry Health Care and Rehabilitation Center in Gainesboro, Tennessee.

Mabry Health Care, a family-owned business founded in 1979, has been serving the Gainesboro community for more than four decades. Located just 20 miles outside of Nashville, this area has evolved to meet the needs of its residents. Originally focusing solely on skilled nursing care, the center expanded its services to include assisted living in 2005.

Today, the facility consists of 108 total beds, including 80 skilled nursing beds and 28 assisted living beds in 16 units.

But despite its deep roots and long-standing presence in the community, Mabry Health Care struggled with significant challenges at the time of its launch, ESI said in a press release. The community was operating at 71% occupancy and received a 1-star rating from the Centers for Medicare & Medicaid Services (CMS). These obstacles, as well as the state’s market conditions, led the owner to explore exit options.

ESI facilitated an off-market transaction by connecting the seller to Strawberry Fields REIT. To ensure a smooth transition, Strawberry Fields’ operator stepped in to assist with operations before the sale was completed, preserving the life of the asset and maintaining consistent quality of care for residents.

Ziegler provided $82.9 million in financing for Eskaton

Ziegler announced the closing of Eskaton Obligated Group’s $82,895,000 Series 2024 Notes through the California Municipal Finance Authority.

Eskaton, a California nonprofit public benefit organization, is a regional provider of aging services dedicated to improving the lives of older adults in Northern California for more than 55 years. Eskaton was founded in 1967 as a California nonprofit, public benefit corporation that got its start in skilled nursing and acute care hospitals.

Currently, Eskaton and its related subsidiaries own or manage 25 senior housing communities with living options that include independent living, assisted living, memory care, skilled nursing and affordable housing.

The Eskaton Imperative Group consists of three members and consists of 5 communities.

The Series 2024 Bonds are rated BBB by Fitch Ratings for the first time and are issued through the California Municipal Finance Authority. The Notes consist of long-term, tax-exempt, fixed-rate bonds that provide the same level of debt service, with a final maturity of 20 years on November 15, 2044, Ziegler said in a press release.

Proceeds from the Notes, along with other available funds, are used to fund capital improvements throughout the Obligor Group communities, repay all outstanding indebtedness of the Series 2012, 2013 and 2022 Notes, make swap termination payments and pay certain costs incurred in connection. Along with the bond issuance.

Ziegler secures $67.27 million in financing for Garden Spot Village

Ziegler announced the closing of Garden Spot Village’s $67,270,000 Series 2024 Tax-Exempt Fixed Rate Notes.

“We are thrilled to have successfully completed this tax-exempt bond transaction,” said Nate Weber, chief financial officer of Garden Spot Village. “This financing not only meets our immediate needs through key project financing, but also improves our financial position by strategically refinancing our existing debt. With this increased stability, we are now well positioned to explore potential expansion opportunities, enabling us to pursue our mission with greater strength and confidence.” It allows us to continue to bring it.”

The Obligor Group consists of Garden Spot Village and its subsidiary GSV LLC.

Garden Spot Village is a Pennsylvania not-for-profit corporation that owns and operates a life plan community (LPC) known as Garden Spot Village, located on an approximately 220-acre campus in New Holland, Pennsylvania. The community includes 621 independent living homes consisting of 306 apartments and 315 cottage-style homes, 65 personal care units, 40 memory support units and 73 skilled nursing beds.

GSV LLC, meanwhile, owns and leases the 50,000-square-foot ambulatory care building known as the Wellness Center. It is leased to WellSpan Health, a local not-for-profit hospital that provides a variety of medical services to residents of Garden Spot Village and the broader community.

Proceeds from the bond will be used to repay and retire the company’s Series 2019 bank obligations, build a state-of-the-art cogeneration power plant, renovate the company’s existing healthcare center, and finance other capital expenditures.

The Series 2024 Bonds are rated BBB by Fitch Ratings and are issued through the Lancaster Municipal Authority. The final maturity of the 2024 Notes is 35 years. The bonds were priced to have a weighted average yield to maturity of 4.41% and a weighted average yield to maturity of 4.50%. The Series 2024 Notes were sold without a debt service reserve fund. Investor demand for the issue was strong; 31 institutions participated in the offering, with significant distributions to Pennsylvania-specific funds.

Garden Spot Village ranked 2nd Newsweek Magazine’s ranking America’s Best Continuing Care Retirement Communities 2024.