Greystone’s $71.3M Skilled Nursing Deal; Innovative Health’s $14.7M Construction Loan

Greystone on Tuesday announced its role in the $71.3 million refinance of Massapequa Center Rehabilitation and Nursing, a 320 bed skilled nursing facility in Massapequa, N.Y., on Long Island.

The Department of Housing and Urban Development (HUD)-backed loan replaces bridge financing originated in the fall of 2017 for the acquisition of the facility, which offers long- and short-term nursing care in addition to adult day and dementia care.

“We treat our residents like family and will do whatever it takes to provide them with the best care,” Massapequa Center president Bernie Fuchs said in a statement released by Greystone. “Every resident here knows that they will be treated as I would want my mom to be treated.”

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The family-run ownership group has put up $8.5 million to upgrade the property, originally built in 1974, by adding private suites, a commercial kitchen, and other amenities. The 30-year loan, originated by the New York City-based Greystone’s Fred Levine, will also allow Massapequa Center leadership to perform additional physical-plant upgrades.

Innovative Health Secures $14.7M for New Construction

Lancaster Pollard landed a $14.75 million construction loan for Innovative Health’s latest development, a 68-bed post-acute facility in Aurora, Ill.

Branded as THRIVE, the new facility will specifically serve short-term residents recovering after hospital stays, and marks one of three Innovative Health properties under development in the Chicago metropolitan area.

“If you look at the skilled nursing industry in Illinois, there’s no new product in the market and not a lot of local choices for consumers,” principal owner and operator Brad Haber told SNN in November. “No one in Illinois is building three skilled nursing facilities. I’ve seen the skilled nursing buzz change from somewhat negative to more positive in the past few months.”

Lancaster Pollard generated the financing with the backing of HUD’s Section 232 program, with Brett Murphy leading the transaction for the Columbus, Ohio-based lending and advisory firm.

State Supreme Court Upholds $4.3M Valuation

The New Hampshire Supreme Court sided with a city’s $4.3 million valuation of a nursing home property for tax purposes, legal publication Law360 reported this week — a figure that its former landlord had claimed was far too high.

Ventas Inc. (NYSE: VTR), which had owned the property before spinning off its skilled nursing assets back in 2015, claimed that the facility was worth at most $1.7 million in 2014, according to Law360. When appraisers for the city of Dover, N.H. assessed the value of the facility that year, they arrived at the much higher $4.3 million price tag, prompting a lawsuit from the real estate investment trust (REIT), the publication reported.

The case wound its way up to the Granite State’s Supreme Court, which this week rejected Ventas’s arguments and upheld the $4.3 million price tag.

A spokesperson for Ventas told Law360 that the outcome was irrelevant, as the REIT no longer owns the property.