New York Operator Snaps Up Two Welltower-Affiliated Virginia Nursing Homes for $82.4 Million

Richmond, Virginia — A New York-based skilled nursing operator has picked up two Welltower-affiliated rehab and care facilities in Virginia for a combined $82.4 million, part of a broader wave of deal activity reshaping the skilled nursing landscape across the country.

Hill Valley Healthcare, founded in 2018 and headquartered in the Five Towns area of western Long Island, closed on both properties in January. The company paid $46.5 million for Lakeside Health & Rehabilitation and $35.9 million for Rosedale Health & Rehabilitation, according to property records. Both facilities serve patients with short- and long-term nursing needs, including specialized Alzheimer’s and dementia care.

The seller in each transaction was an entity affiliated with Welltower (NYSE: WELL), an Ohio-based real estate investment trust that had held the properties for more than two decades — acquiring Rosedale in 2003 for $11.9 million and Lakeside in 2004 for $2.5 million.

A Growing Regional Footprint

The Virginia purchases mark another expansion for Hill Valley, which now owns 39 facilities across six states, according to federal data. It’s not the company’s first move in the Richmond market either — Hill Valley bought Forest Hill Health & Rehabilitation there in 2022 for $18.4 million.

Lakeside spans roughly 99,000 square feet, while Rosedale covers about 40,600 square feet. The most recent assessed values of the two properties — $13.5 million for Lakeside and $7.8 million for Rosedale — put the sale prices sharply above assessed value, reflecting the premium buyers are still willing to pay for established, operating SNF platforms in competitive metro markets.

Multi-State Deal Closes With $51.2M in Bridge Financing

The Virginia transaction wasn’t the only notable deal to close recently. Capital Funding Group (CFG) announced it finalized bridge loan financing for a $51.2 million acquisition of four skilled nursing facilities — totaling 487 beds — spread across Colorado, Alabama, and Arizona. That deal closed on February 2, 2026.

“The closing of this deal reflects the strong momentum we’re carrying from a record 2025 into the new year,” said Erik Howard, CFG Bank president. “It also underscores the sustained demand from operators expanding their portfolios.”

The multi-state financing is another signal that capital is still flowing into skilled nursing, even as operators navigate tight Medicaid margins and ongoing workforce pressures. As operators continue expanding their portfolios through acquisitions, deal volume is giving investors and lenders reason for cautious confidence in the sector’s trajectory.

What the Deals Signal

Taken together, these transactions point to continued appetite for SNF acquisitions — both from operators looking to scale and from lenders willing to back them. The Welltower divestiture, in particular, is worth watching: REITs have been selectively trimming and repositioning their SNF holdings over recent years, making deals like this a window into how institutional capital is moving around the sector.

Whether that momentum holds through the rest of 2026 may depend on how Washington handles Medicaid funding and regulatory pressures that continue to weigh on operator margins.