GlobeSt.com UPDATE: CapitalSource Closes $211M Nursing Facility Purchase

CHEVY CHASE, MD-Commercial finance concern CapitalSource Inc. has wrapped up the first transaction through its newly formed down-REIT CSE SNF Holdings LLC. The firm has closed on the $211-million acquisition of 37 skilled nursing facilities and a single assisted living property from five companies, GlobeSt.com has learned. With the exception of one facility in Pennsylvania, all of the properties in the sale-leaseback transaction are located in Florida.

“The most important aspect of this transaction is that it was done through our down-REIT, which was extremely tax efficient for the owners,” James Pieczynski, CapitalSource co-president of healthcare and specialty finance, tells GlobeSt.com. CapitalSource Inc. elected REIT status via CSE SNF Holdings as of Jan. 1. The down-REIT structure of the deal allowed the company to pay much of the $211-milliion purchase price in the form of CSE SNF Holdings interests that can be traded for CapitalSource common stock shares.