Carnegie Capital Secures $12M for Maryland SNF; Cross-State Merger in NJ
Carnegie Capital Secures $12M Loan to Refinance Skilled Nursing Facility
Carnegie Capital, a commercial real estate finance and advisory firm based in Austin, Texas, sourced and structured a $12 million loan to refinance the existing note on a 115-bed skilled nursing facility and free up additional proceeds to upgrade the building. The loan will also be used as the owner’s equity for an upcoming new development.
The SNF is located in northwestern Maryland and is owned by a local health care owner-operator. It had an excess of beds that the developer was seeking to better use for higher-acuity patients, according to a press release announcing the deal. The loan was capped at 80% of post-rehab value.
The note has a low floating rate, with a flexible exit after the second year that lets the owner have the freedom to dispose of the asset or refinance as the market permits.
J.D. Stettin, managing partner at Carnegie Capital, arranged the transaction.
New York Armenian Home Closes, Merges with New Jersey Facility
The New York Armenian Home relocated and merged with the Armenian Nursing and Rehabilitation Center (ANRC) in Emerson, N.J., the Mirror-Spectator reported.
The ANRC was looking to upgrade its facility, at the same time the directors of the Armenian Home had entered an agreement to sell their facility for $50 million and started looking for a new location.
The two facilities agreed to enter a joint venture, for which the legal paperwork is being finalized. The sale of the Armenian Home in Flushing, Queens, is expected to close in August, with part of the proceeds going to finance the partnership.
Khoren Bandazian, secretary of ANRC’s board of directors, told the Mirror-Spectator that the two entities would establish a new non-profit company in which each side will participate. They are in talks with the Hackensack Meridian Health Network to be the developer, build the facility, and manage it upon completion, Bandazian added.
Written by Maggie Flynn