Effective Capital Solutions in Senior Living and Care Drive Growth & Improve Quality of Life

The Ikaria team facilitated a $260MM term loan to acquire a 37-property skilled nursing and assisted living portfolio in the Pacific Northwest. The seller, a family-owned business, was exiting the sector. Through its exclusive partnership with an institutional public REIT, Ikaria structured a full-term, interest-only fixed-rate loan to  the transaction.

This portfolio encompassed assets across multiple states with varying acuity levels. Transitioning to a new operator required extensive pro forma underwriting. Leveraging its deep expertise in bridge-to-FHA/HUD transactions, Ikaria successfully executed this complex transaction.

The Ikaria team structured a $582MM term loan and $25MM mezzanine loan to support the acquisition of the real estate of eighteen skilled nursing facilities in West Virginia. Ikaria is submitting the FHA/HUD applications to refinance the bridge loan.

This transaction involved a national sponsor partnering with a large regional operator already established in the state. Ikaria structured a non-recourse unitranche loan, incorporating mezzanine debt to finance 85% of the total acquisition cost. The deal’s complexity was heightened by the syndication across multiple banks and the coordination of the mezzanine debt layer, requiring meticulous structuring and execution.

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The Ikaria team originated a bridge-to-FHA/HUD refinance of $110.6MM for a portfolio of four skilled nursing facilities in Georgia. Proceeds of the transaction were used to refinance existing debt and to fund an equity recapitalization for the owners. Ikaria sourced an $80MM A note from a traditional bank partner and structured the remaining capital in the form of a B note. The transaction included an earn-out provision tied to performance metrics established at closing, which the borrowers successfully met in line with the initial underwriting.

Any bridge loan that incorporates an equity recapitalization needs to be underwritten very carefully to ensure that all eligible proceeds are eligible to be refinanced with HUD two years later. Ikaria’s underwriting expertise and knowledge of the FHA/HUD rules and debt eligibility guidelines ensured that all participants within the transaction were comfortable with the takeout.

The Ikaria team structured a $64.7MM term loan to support a combined acquisition and refinance of five skilled nursing facilities in CA and TX. The sponsor refinanced the term loan with a corporate line of credit and will bring the assets to FHA/HUD over the next few years.

This transaction involved a nationally renowned operator that sought to simplify its capital structure for this group of assets. The Ikaria team structured a whole loan at 85% of cost for the acquisitions and 100% of cost for the refinances.

The Ikaria team facilitated a $425MM bridge-to-FHA/HUD financing for the recapitalization of two portfolios for the same borrower. The buyer had acquired the assets during COVID and increased value tremendously since the initial purchase. Ikaria sourced $44.8MM of subordinate debt within the capital stack to supplement the senior bank lenders. The financing facilitated a buyout of ownership and enabled the operator to move into an ownership role within the property companies.

A bridge loan which extracts equity from an existing capital structure requires very careful and diligent underwriting. Ikaria’s expert knowledge of the FHA/HUD rules and program guidelines were critical to ensuring all participants in this large transaction were comfortable with the takeout.

The Ikaria team structured a $75.65MM term loan to support the turnaround acquisition of five skilled nursing facilities in CA. One of the facilities was sold for a significant gain and another was refinanced with FHA/HUD. A third facility will close a FHA/HUD loan in the near future.

This transaction involved a major west coast sponsor partnering with a large national operator to purchase the portfolio from a family that was exiting the sector. The Ikaria team structured a unitranche loan at 85% of cost with 36 months interest only.

Ikaria Capital Group, together with one of its institutional partners, executed a $25MM in bridge-to-FHA/HUD financing for the refinance of a five-asset skilled nursing portfolio. The local operator is a long time owner in the state and the bridge loan assisted in refinancing an impending bank debt maturity.

Leveraging an institutional partner of Ikaria Capital Group, our team was able to secure a refinance for our client at a challenging time in the bank market, enabling the borrower time to complete permanent FHA/HUD financing with Ikaria.

The Ikaria team structured a $161MM term loan to support the acquisition of the real estate of twelve skilled nursing facilities in South Carolina. A $175.6MM FHA/HUD loan was closed to refinance the bridge loan.

This transaction involved a national sponsor partnering with a large national operator entering a new state and purchasing a value add portfolio. Ikaria structured a non-recourse unitranche loan at 85% of cost for the acquisition with two years of interest only on the debt. The operator successfully turned the assets around and the FHA/HUD loan retired 100% of the bridge debt.

The Ikaria team structured a $17.5MM term loan to support the turnaround acquisition of a skilled nursing facility in CA. The sponsor has hit budget and plans to close a FHA/HUD loan with Ikaria.

This transaction involved a regional operator that purchased the asset during a time of both financial and clinical distress. Initial funding represented 85% of cost with the ability to earn out additional proceeds based on performance. The buyer used its regional scale and expertise to notably improve facility performance, including clinical improvements which facilitated its removal from the special focus candidate list.