KeyBank Provides $67.2M Financing for West Virginia SNF Portfolio
KeyBank Real Estate Capital provided $67.2 million in financing for a three-property skilled nursing portfolio in West Virginia, through the Federal Housing Administration’s 232/223(f) loan program.
The facilities are include Marmet Center in Marmet, Cedar Ridge Center in Sissonville and Willows Center in Parkersburg. All of them are operated by Genesis Healthcare (NYSE: GEN). They have a combined total of 306 licensed beds.
All three facilities are owned by a joint venture (JV) comprised of Cindat Capital Management, Ltd., Best Years, LLC and Welltower Inc. They were acquired as part of a larger pool of assets in a deal that closed around December of 2016, John Randolph, senior mortgage banker at the commercial mortgage group at KeyBank Real Estate Capital, told Skilled Nursing News.
The financing team consisted of Randolph, along with Laura Conway and Brandon Taseff from Key’s Healthcare Group.
“We have refinanced 17 loans as part of this purchase to date, and that includes these most recent three,” Randolph told SNN.
The portfolio included nursing homes from other states in the northeast, and five have been financed in West Virginia to date, Randolph said. For Marmet Center, Ridge Center and Willows Center, the $67.2 million loan proceeds were primarily used to repay a portion of an existing KeyBank syndicated bridge loan, which funded the acquisition of the larger pool of assets.
One thing that made the assets attractive, in combination with their being well-run, is the location.
“West Virginia has a pretty strong Medicaid reimbursement system … so the operating metrics are pretty strong for these assets,” Randolph said.
Written by Maggie Flynn