Greystone Monticello Quickly Closes $200M in Financing for SNF Portfolio Even As Borrowers Face Multiple Headwinds

Greystone Monticello on Monday announced the swift closing of $201.3 million in capital financing for a portfolio of New Jersey SNFs.

The majority of financing – $191.3 million of it – was for a health care bridge loan, while $10 million was for a working capital facility on behalf of Peace Capital.

Greystone, a private national commercial real estate finance company, along with its joint venture partner Monticello, accomplished a speedy transaction for parties involved. The process took only 35 days to complete.

Swift closings are increasingly becoming few and far between, with “tourist lenders” leaving the space during the pandemic. Meanwhile, slower lease-ups have led to properties staying in the permanent debt market space longer, according to Ari Adlerstein, senior managing director with Meridian Capital Group.

Lenders are facing maximum limits on the amount that they can lend to a single borrower, constraining debt, he said.

Adlerstein, along with Alan Litt, president of Greystone Monticello, spoke last month at the annual eCap conference in Miami and touched on the current lending environment.

In announcing the company’s latest transaction, Litt said the team at Greystone Monticello intends to alleviate the lending issues confronting SNF operators.

“We understand the pain points borrowers are facing with the need for ‘gap financing’ to complete the capital stack at the closing table, and we are providing solutions for these needs,” Litt said.

Skilled Nursing News has also heard anecdotally that it has been harder for SNF operators to obtain permanent financing from HUD, as rising interest rates clash with maturing two- to three-year bridge loan deals and a reduced pool of lenders.

Cases are arising where a nursing home may have a maturing loan but isn’t performing well enough to exit the loan. However, lenders will try to find ways to work with borrowers that have put in good-faith efforts and have been transparent, Litt said at eCap.

“Our work together as Greystone Monticello combines the strengths of our capital relationships and lending expertise to better serve our clients,” Litt added in a statement on Greystone’s recent transaction.

Greystone continues to provide debt and liquidity to the health care and multifamily markets during a “time of volatility.”