Formation Capital Secures $249M for Skilled Nursing Portfolio


The financing measure was provided by KeyBank Real Estate Capital.

Florida and MississippiFormation Capital has received financing for a portfolio consisting of 22 skilled nursing facilities located in the southeastern U.S. The company received $249 million in FHA financing from KeyBank Real Estate Capital for its assets.

Brian Beckwith - CEO, Formation Capital

Brian Beckwith – CEO, Formation Capital

The financing measure was arranged by KeyBank’s Healthcare Mortgage Group representatives Paul di Vito and John Randolph. The two secured the measure through FHA’s 232/223f mortgage insurance program. “Our strong relationship with HUD allowed us to secure financing for this portfolio within six months of the property acquisitions,” Randolph noted. Of the 22 facilities that make up the portfolio, 17 are located in Florida, while the remaining five are in Mississippi.

According to a press statement announcing the financing, loan proceeds will be directed towards paying down an existing bridge loan that previously helped Formation Capital acquire 66 facilities. “Key’s ability to provide quick and competitive financing has been crucial to our success,” Brian Beckwith, CEO of Formation Capital, said in prepared remarks.

Formation has established somewhat of a tradition when it comes to high-volume transactions, having previously completed a $1 billion acquisition of a senior housing and skilled nursing portfolio as part of a joint venture with NorthStar Realty Finance Corp. in March 2014. Later that year, the company entered another joint venture with global principal investment firm Safanad Limited to acquire 14 assets in Virginia, Pennsylvania and Maryland for $150 million.

Image courtesy of Formation Capital 

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