$42M Portfolio Refinance in Texas; Cambridge Turns Two with $10M Deal

Lancaster Pollard landed a pair of bridge loans for skilled nursing operator The Arboretum Group, pulling off a total of $42 million in recapitalization efforts at five properties.

The first loan, a $12 million product with a 12-month term, refinanced existing debt on two skilled nursing facilities in southern Texas. The second deal saw the Columbus, Ohio-based Lancaster Pollard team up with syndicate partner MB Financial Bank to finance a $30 million, 30-month bridge loan on three additional Arboretum Group properties in the Lone Star State.

The second transaction will allow the operator to both refinance the properties and extract existing equity, according to Lancaster Pollard. Both loans were originated in anticipation of eventual conversion to permanent financing backed by the Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA).

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Lancaster Pollard’s Scott Blount, Chris Mauger, and Eric Sengpiel led the deals; Joe Munhall spearheaded the syndication effort.

Harborview’s $52M bridge loan

Harborview Capital Partners arranged a $51.9 million bridge-to-HUD loan for the acquisition of a six-SNF portfolio in California with 678 beds.

The Lawrence, N.Y.-based Harborview did not name the buyer, described as a “well-respected national private investment group.” The loan, with a three-year term and 90% leverage, was originated by Harborview’s Jonathan Kutner and Eli Kutner; Robert Kellerman served as the negotiator.

Cambridge’s Oklahoma two-step

Cambridge Realty Capital Companies secured HUD refinance loans for two combination skilled nursing and senior living properties in Oklahoma, the lender announced Thursday.

Cambridge arranged a $2.4 million loan for North Country Senior Living in Collinsville, Okla. and a $7.5 million loan for Heartsworth Senior Living of Vinita, Okla. — with both transactions processed through the HUD 232/223 program. The two properties, both owned by the same company, have a total of 217 skilled nursing beds, 60 assisted living units, and 50 independent living units.

New owners plot $58M skilled nursing project

The new owners of a Buffalo, N.Y.-area nursing home last week unveiled an ambitious $58 million redevelopment project, Buffalo Business First reported.

Under a proposal submitted to the New York State Department of Health, the owners would knock down both buildings associated with the Williamsville Suburban Nursing Home, then replace it with a 190-bed property in a “neighborhood style.”

“It’s an appreciating asset, so the investment at this point in time makes a lot of sense,” Michael Balboni, attorney for Golden Shores Care Center for Nursing and Rehabilitation LLC, told the publication. “This type of investment is important to signal that long-term care residents get the investment it deserves.”

The project would take up to three years to complete, according to Balboni, who also noted that the upgrades were necessary due to the functional obsolescence of the old facilities.

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