Own First, Renovate Second: CFG’s One-Stop Shop Model in Action 

Creekside Care and Scotland Manor Health Care Center are North Carolina skilled nursing facilities that have 151 and 64 beds, respectively. Affiliates of the ARBA Group had been operating the two buildings for about a year, and sought to acquire and renovate the two centers. When they first reached out to CFG about a possible acquisition deal, CFG went to work in determining the best deal structure. By focusing on the short time period in which the ARBA affiliates were operating the centers, CFG was able to determine that they had made significant improvements to the facilities. Based on this performance and the tenant’s ability to negotiate a below market purchase price, CFG was able to finance the renovations in addition to the purchase price. Through a combination of a senior commercial loan and and subordinated loan, CFG provided 100% financing for the two centers — with no out-of-pocket expense at closing. Thanks to CFG’s “one-stop-shop” model, the ARBA affiliates acquired the two facilities for $9.5 million with remaining funds to renovate the buildings as owners.