$32M Bridge Loan for TX Portfolio; Nursing Home Breaks Ground in Illinois

Greystone Provides $31.5M Bridge Loan for SNF Portfolio in Texas

Greystone provided a $31.5 million bridge loan for a portfolio of four skilled nursing facilities in Texas. The non-recourse loan carries an initial term of 24 months with two six-month extension options; it also includes a floating interest rate and interest-only payments for the entire term.

The loan proceeds are being used to refinance the 204-bed Heritage Oaks Residence & Rehabilitation Center and the 202-bed Quality Care of Waco. Two SNFs are also being acquired: The 186-bed Westview Manor & Rehabilitation Center and the 112-bed Galleria Residence & Rehabilitation Center.

In addition, the commercial real estate lending, investment, and advisory company is underwriting a permanent Department of Housing and Urban Development (HUD) 232 loan for the properties, which is expected to close within nine to 12 months.

The transaction was originated by Greystone managing director Fred Levine.

Lancaster Pollard Facilitates $14.2M Refi for Massachusetts SNF

Lancaster Pollard secured a $14.2 million refinancing for a 55-unit, 101-bed SNF in Braintree, Mass., on behalf of the nonprofit Alliance Health & Human Services.

The loan was originated through the Federal Housing Administration (FHA) 232/223(f) program, and was the fifth FHA financing that Alliance completed with the Columbus, Ohio-based Lancaster Pollard.

The refinancing repositioned the asset and locked in a low, long-term fixed interest rate; the loan proceeds were also used to reimburse the borrower for previous capital expenditures.

The deal additionally allowed Alliance to file a Determination of Need (DON) request with the state of Massachusetts to invest about $3 million in renovating the facility. Through the DON process, the state will reimburse the cost of the upgrade through a future boost in the Medicaid rate.

Aaron Becker lead the transaction for Lancaster Pollard.

Transitional Care of Lake County Breaks Ground

Transitional Care of Lake County, a $30 million SNF in Mundelein, Ill., began to take shape with a ceremonial groundbreaking last week, the Daily Herald reported.  Innovative Health LLC is the developer and owner; it will also operate the 185-bed facility.

The facility will offer long-term nursing, memory care, and short-term rehab services, serving as a replacement for the existing Winchester House nursing home; the building is expected to open in mid-2020.

Transitional Care has leased and operated Winchester House since August 2015, with the government of Lake County subsidizing its operations. Under an agreement with the county, Transitional Care had to complete a new building or exit the current one.

All Winchester House residents will be moved to the new building with no change in their existing arrangements, Innovative Health principal Brad Haber told the Herald.

Written by Maggie Flynn