Capital Funding’s $14.7M Bridge Loan in Utah; Sims Lands $14.1M Skilled Nursing Financing in Hawaii

Capital Funding, LLC announced the closing of a $14.7 million of a real estate term loan for a skilled nursing facility in Utah, which closed on October 3, 2019.

The Baltimore-based Capital Funding helped owner Stonehenge of Utah to refinance existing debt and buy out Stonehenge of American Fork, minority partners of a 119-licensed bed skilled nursing facility in American Fork, Utah.

The deal is a bridge-to-HUD refinance loan with the goal of pursuing permanent Department of Housing and Urban Development financing in the near future.

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Stonehenge of American Fork is a five-star facility under CMS’s quality rating system.

Tim Eberhardt, vice president of real estate finance, originated the transaction for CFG.

Sims Provides Refi for Hawaii Skilled Nursing Facility

Sims Mortgage Funding (SMF), a subsidiary of private investment bank and wealth management firm HJ Sims, this week announced the completion of a $14.08 million loan for Liliha Healthcare Center in September of 2019.

Liliha, a skilled nursing facility in Honolulu — along with and Nuuanu Hale, its sister facility — was refinanced through a collateralized bridge loan with a high interest rate and short maturity, with options to extend the loan beyond the initial period; Sims also provided additional financing for the holding company of the two facilities.

SMF underwrote the loan as a replacement for much of the bridge debt — with the unpaid balance remaining on the Nuuanu property — and negotiated a waiver that allowed HUD to approve the loan without modification. As a result, the holding company loan was not subject to some of HUD’s secondary financing requirements.

The HUD-insured loan and the holding company loan made through SMF allowed the Liliha borrower a 60% reduction in its interest rate with a more stable capital plan as opposed to using a more costly short term lender, according to the Hartford, Conn.-based Sims.

The $14.08 million figure represents 80% of the estimated market value.

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