Last week, Siena Healthcare Finance announced the closing of a $15M working capital facility for Michigan based Optalis Health & Rehabilitation, through a line of credit for Optalis’ acquisition of a new SNF group.
“We are thankful to partner with Raj, who has led Optalis on a continued growth strategy,” said Jennifer Sheasgreen, Siena Healthcare Finance President. “Through collaboration and a flexible borrowing base structure, we crafted a unique, tailored solution that works for Raj and his team.”
Siena Healthcare Finance is a division of Siena Lending Group, which is a portfolio company of Franklin BSP Lending Corporation, an affiliate of Benefit Street Partners LLC.
“We are pleased to confirm the successful closing of a working capital line of credit with Siena Healthcare Finance for a recently acquired portfolio. Siena’s team, under the leadership of Jennifer Sheasgreen, was able to work through the various complexities of the deal structure, including underwriting unbilled receivables during the CHOW process,” said Raj Patel, CEO of Optalis.
Lument Securities advises sale of 120-bed Florida skilled nursing facility
Lument Securities recently served as a financial advisor to the board of directors of nonprofit Epworth Village Retirement Community on the sale of the business to a private joint venture partnership. Epworth owns and operates a campus near Miami, Florida that offers the complete continuum of care.
Managing Director and Head of M&A Laca Wong-Hammond and Associate Director Dominic Porretta led the transaction for Lument Securities.
The transaction, which closed on March 31, 2023, allowed the Epworth Village board of directors to complete an outright sale of business operations for the entire campus at a price that exceeded expectations
Located in Hialeah, Florida, approximately 13 miles northwest of downtown Miami, the campus consists of Epworth Village, a 290-unit independent and assisted living community, and the Susanna Wesley Health Center, a 120-bed skilled nursing facility that is five-star rated by the Centers for Medicare & Medicaid Services.
“From the moment we engaged Laca and her team, we felt our objectives were not only heard but honored. Through numerous meetings, she educated us on the marketplace and potential investors, negotiated terms, built consensus, and executed,” said Rev. Ruben Velasco, chairman of the special committee of the board of directors. “We are delighted with the ultimate result.”
Berkadia Seniors Housing & Healthcare closes $86 million in first quarter of 2023
Berkadia Seniors Housing & Healthcare, in partnership with Live Oak Bank, announced four bridge-to-HUD loan closings totaling $86 million in the first quarter of 2023.
The partnership between Live Oak Bank and Berkadia, which commenced in October 2022, has closed $143 million of bridge-to-HUD and GSE transactions, the majority of which have been structured as A/B notes with Berkadia funding the B-note.
The interest-only loans typically carry terms of 24 months with rates floating over one-month term SOFR. Loans closed to date facilitated purchases and refinances of four assisted living and memory care communities, two skilled nursing facilities, and one independent living facility.
The properties and borrowers are scattered throughout the country as there are no geographic constraints for the loan program.
Managing Director Jay Healy of Berkadia Seniors Housing & Healthcare led the transactions.
“I’m pleased that we’ve created a program to allow strong sponsors to leverage our balance sheet to secure bridge loans that a bank might not otherwise be able to fund on their own,” said Healy. “These are quality, cash-flowing assets in good markets that simply need a little more NOI seasoning to qualify for HUD and/or Fannie Mae or Freddie Mac financing.
With performance still rebounding after COVID, staffing and inflationary pressures, we’ve been able to solve problems for borrowers and fill a void in the market, particularly as permanent interest rates have been less accommodative.”
Companies featured in this article:
Benefit Street Partners LLC, Epworth Village Retirement Community, Optalis
