KeyBank Provides $36M for Four-SNF Portfolio; Regional Transfers Five Buildings
KeyBank Provides $36M for Ohio SNF Deal
KeyBank Real Estate Capital provided Foundations Health Solutions, a long-term health care company based in North Olmstead, Ohio, with $36.3 million in funding to acquire a four-property skilled nursing portfolio in Ohio. RE Journals first reported the transaction.
The loan proceeds, funded through the Federal Housing Administration (FHA) 232/223(f) loan program, were used to pay down a portion of an existing $87.5 million bridge loan that KeyBank provided Foundations to acquire nine SNFs.
The financing was coordinated by John Randolph of KeyBank’s Commercial Mortgage Group, along with Henry Alonso and Brandon Taseff of KeyBank’s Healthcare Finance Group.
Regional Health Properties Transfers Operations of Ohio Facilities
Regional Health Properties (NYSE American: RHE) (NYSE transferred operations of four SNFs and one assisted living facility in Ohio to affiliates of MSTC Development, Inc., effective December 1.
Regional’s management opted to transfer the facilities due to weak performance and non-payment of rent by the previous operator, the company said in a statement announcing the transaction.
“The new lease agreement was structured with lower rental rates initially but these rental payments will escalate based on facility occupancy,” Regional wrote in a press release. “This structure enabled Regional Health Properties to attract a superior operator, and management expects MSTC will improve facility level operations significantly.”
Diversicare Completes Sale of Three Kentucky SNFs
Diversicare Healthcare Services, Inc. (Nasdaq: DVCR) completed the previously announced sale of three SNFs in Kentucky, effective December 1. The facilities — the 60-bed Diversicare of Fulton, the 94-bed Diversicare of Glasgow, and the 88-bed Diversicare of Clinton — were sold for a total price of $18.7 million.
The net proceeds were used to pay off associated indebtedness, as per the terms of Diversicare’s mortgage line and revolving credit facility.
Written by Maggie Flynn