Strawberry Fields Acquires Skilled Nursing Facility in Louisville, Raises $67.1M in Bonds

LOUISVILLE, Ky., and SOUTH BEND, Ind. — Strawberry Fields REIT LLC has acquired Landmark Rehabilitation and Nursing Center of River City, a 92-bed skilled nursing facility in Louisville, for $6.5 million.

Christian Care Centers sold the property, which was built in 1962 and renovated in 2014. The Landmark Group currently leases the facility. Landmark of River City was 81 percent occupied at the time of sale.

In a separate transaction, the South Bend-based REIT also raised $67.1 million in bond financing. The move included raising costs of $1.5 million, resulting in a total of $65.6 million in financing.

The debt is repayable in three annual payments on March 31 of 2020 through 2022. The first two payments will represent 10 percent of the principal each, with the final payment representing the final 80 percent.

"We were pleased to issue this new bond as it will enable us to pay down bank debt, and continue to execute on our strategy to acquire and improve nursing homes and long-term acute care hospital facilities," says Moishe Gubin, CEO of Strawberry Fields.

Among the lenders are some of the biggest institutional investors in Israel, including Harel Insurance, Meitav Dash and Psagot. Apex Issuances acted as the lead underwriter for the offer.

Strawberry Fields owns 59 skilled nursing facilities in Illinois, Indiana, Ohio, Texas, Michigan, Tennessee, Kentucky and Oklahoma.

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